The Future Energy Jobs Act. Will Baker Midwest Energy Efficiency Alliance

Transcription

1 The Future Energy Jobs Act Will Baker Midwest Energy Efficiency Alliance

2 MEEA The Trusted Source on Energy Efficiency We are a nonprofit membership organization with 160+ members, including:»utilities»research institutions and manufacturers»state and local governments»energy efficiency-related businesses As the key resource and champion for energy efficiency in the Midwest, MEEA helps a diverse Range of stakeholders understand and implement cost-effective energy efficiency strategies that provide economic and environmental benefits.

3 Agenda» Why do energy efficiency?» What are the main drivers behind energy efficiency?» Who are the players?» What is this new law?

4 The Flavors of Energy Efficiency Voluntary Residential Insulation LED lighting Appliances rebates Air sealing Federal Initiatives Appliances/equipment standards ENERGY STAR labeling Voluntary Commercial & Industrial Like Residential, plus Building operations and Strategic Energy Management (SEM) Process efficiency Green building certification State or Local Initiatives Building energy codes Building data collection (benchmarking) Regulated Utility Programs Mandated and voluntary programs for utility customers

5 ACEEE State Energy Efficiency Scorecard The ACEEE Scorecard covers six of the primary policy areas in which states have historically pursued energy efficiency: Utility and public benefit programs and policies Transportation policies Building energy codes Combined heat and power (CHP) State government led initiatives Appliance and equipment efficiency standards

6 Midwest State Rankings on 2016 Scorecard 4 states in Top Decrease/Increase in score compared with 2015 Scorecard Not necessarily due to reductions in EE; can be due to gains in other states changing relative rankings 5 states in Bottom 10

7 Energy Efficiency Wind Gas Combined Cycle Coal Gas Peaking Solar PV - Rooftop Residential Long-Term Cost of Electricity Resources Nationwide levelized cost $ per Megawatt-hour, Midwest average: Source: LBNL 2013; Lazard 2016

8 Electricity Prices Compared with Cost of EE Average retail electric price, Cents per kwh Illinois United States US Levelized Cost of Saved Energy (LCSE) Range Midwest Average LCSE: 1.4 /kwh 0 Source: EIA, 2017; LBNL 2013; Lazard 2016

9 Clean Energy Trust- Midwest Clean Jobs Report

10 Clean Energy Trust- Midwest Clean Jobs Report

11 Energy Efficiency Resource Standard (EERS)» What is an Energy Efficiency Resource Standard? Specific, long-term energy savings targets for utilities to meet through customer energy efficiency Usually stated in terms of annual percentage reduction in customer retail sales The strongest EERS requirements exist in MA, RI, and VT - almost 2.5% annual savings* Can apply to electric, gas utilities, or both Muni/coop applicability varies depending on legislation & regulatory structures As of January 2017, twenty-six states have policies that establish specific energy savings targets, including Illinois, Iowa, Michigan, Minnesota, and Ohio* Federal EERS have been proposed but have not passed *Source: American Council for an Energy Efficiency Economy (ACEEE): State EERS Policy Brief 11

12 KS ND SD NE KY WI MO IN MN IA MI OH IL $0.0 $0.4 $2.3 $13.0 $56.2 $63.0 $64.7 $102.0 $137.9 Millions $168.8 $205.3 $244.6 $405.7 Statewide Energy Efficiency Budget - Electricity $450 $400 $350 * $300 $250 $200 $150 $100 $50 $ Estimate Planned Budgets *Includes interim period as program year shifts to calendar year starting 2018

13 NE ND KS KY SD MO IN WI OH MN IA MI IL $0.0 $0.0 $0.0 $1.1 $1.3 $7.4 $13.0 $27.0 $32.3 $44.4 Millions $61.5 $79.5 $124.9 Statewide Energy Efficiency Budget Natural Gas $140 $120 $100 * $80 $60 $40 $20 $ Estimate Planned Budget *Includes interim period as program year shifts to calendar year starting 2018

14 Who does energy efficiency?» Commercial, Industrial and Residential End Users» Utilities» Federal, state, and local governments» Public institutions» Regulators, the Illinois Commerce Commission» Implementation Contractors» Evaluators» Trade Allies» Advocates» Retailers and Manufacturers

15 Terminology Total Portfolio All Programs Sectors Residential Commercial & Industrial Single Family Multifamily Commercial Buildings Classes Low Income MF Residential (Units) MF C&I (Common Areas)

16 Typical EE Programs Residential Programs Home Performance with Energy Star Residential lighting Home energy audit Appliance recycling Multifamily housing HVAC Low income weatherization Educational Commercial & Industrial Programs Prescriptive incentives for common technologies such as T-8 or T-5 lighting High efficiency motors and pumps HVAC equipment Agricultural Commercial refrigeration Programs aimed at specific market segments (restaurants, big box stores, etc.)

17 HVAC SAVE» Quality Installation and Quality Maintenance Program for Furnaces and Central Air Conditioners» Trained over 2,000k in Iowa» Illinois pilot

18 Building Operator Certification Program» Rebates available» Focus on Operations & Maintenance» Low cost and no-cost measures» Average savings of $16,000 per year, per trained operator» 74 hours of training» Breakfast and lunch provided» On-site coordinator to help with questions» 5 application projects» Boccentral.org/

19 Public Act aka the Future Energy Jobs Act» Passed in House and Senate with bipartisan support» Signed by Governor Rauner on December 7, 2016» Effective June 1, 2017

20 What is in the Future Energy Jobs Act?» New energy efficiency (EE) targets and changes to DSM programs MORE MONEY AVAILABLE STATEWIDE FOR INCENTIVES!!!!! New savings targets Change in plan cycles Change in public sector and low-income programs» Zero emission credit program» RPS fix» Illinois Solar For All program

21 Transitioning DCEO Programs to Utilities» Utilities responsible for all EE EEPS Programs (Section 8-103/8-104) Taking over DCEO Programs (income qualified, public buildings, and market transformation) Bridge Period Public buildings are minimum of 7% of total budget Public housing spending must be equal to the share of public building energy consumption IPA Procurement (Section B)

22 Other Statutory Provisions/Changes» 4 year DSM Planning Cycles Used to be 3 year cycles» Evaluation, measurement, and verification (EM&V) 3% budget cap on EM&V Language supporting use of M&V 2.0 technology: incorporate advanced metering infrastructure data into the planning, implementation and evaluation of energy efficiency measures and programs...» EE Installer Certification through the Illinois Commerce Commission» Bill Impact Cap ZEC, renewables, and EE programs cannot result in a combined impact of more than 25 cents/month for residential customers If forecasted, utilities must adjust programs

23 How does this impact your organization?» Increased funding for Incentives» More technologies and equipment eligible for incentives» Program year synced with calendar year Aligns with more organizations fiscal years Ability to coordinate energy efficiency project planning with other capital projects Straightforward dates and deadlines» Additional resources to assist with projects» Increase in dedicated staff available for assistance with projects and project development

24 Questions?

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