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A Regulatory Commission as Sponsor of an Energy Efficiency Strategic Plan??? National Association of State Utility Consumer Advocates San Francisco, June.

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Presentation on theme: "A Regulatory Commission as Sponsor of an Energy Efficiency Strategic Plan??? National Association of State Utility Consumer Advocates San Francisco, June."— Presentation transcript:

1 A Regulatory Commission as Sponsor of an Energy Efficiency Strategic Plan??? National Association of State Utility Consumer Advocates San Francisco, June 14, 2010 Panel: The Next Generation of Energy Efficiency Jeanne Clinton Climate Strategies Branch Manager California Public Utilities Commission or (415) 703-1159

2 2 Outline of Remarks CPUC motivation for Strategic Plan, process, outcomes Roles of non-utility stakeholders Plan’s influence on 2010-12 utility programs Welcome other states to borrow freely from our experience

3 3 Refocus on 10-year cumulative savings goals, not 3-year programs Maximize chance to afford achieving full “economic potential” Comprehensive program designs to reach deeper savings and avoid repetitive marketing costs to same customers Expanded market player input could improve program designs & outcomes Focus on non-compliance issues with state & federal codes and standards Renew market transformation perspective – coordinated strategies from RD&D and emerging technologies, through incentives/technical assistance, on to eventual “MT” Why We Needed to Do This

4 4 Motivation: Wanted impending 3-year utility EE filings to be more effective for multi-billion price tag Leadership: vision for role of EE in energy resources and GHG reductions Leverage: utilities important to catalyze others The Market: unprecedented engagement by stakeholders (40 workshops, 500+ participants) Resources: Tapped evaluation & planning budget to engage expert convenors & support Regulator -- Unusual Champion?

5 5 Identifying Strategies to Fill in the “White Space”

6 6 Choosing Big, Bold Targets – Where is The Potential?

7 7 Choosing Targets– The Leverage Opportunity

8 8 The Canvas for Achieving “All Cost- Effective Energy Efficiency” Potential: IOU Efficiency Programs in Context CEC Building Codes & Appliance Standards Investor- Owned Utilities EE Programs Manufacturers, Retailers/Distributors, Builders, Property Owners, Business & Industry Market Actors Public Utility EE Programs Consumer Voluntary Action Public Interest EE R&D

9 9 The California Long Term Energy Efficiency Strategic Plan Making Energy Efficiency a Way of Life in California

10 10 All new commercial construction in California will be zero net energy by 2030. Commercial New Construction All new residential construction in California will be zero net energy by 2020. Residential New Construction Heating, Ventilation, and Air Conditioning (HVAC) industry will be reshaped Residential / Small Commercial HVAC BIG BOLD Energy Efficiency Strategies Low- Income Energy Efficiency All eligible low- income homes will be energy- efficient by 2020 4

11 11 Example: COMMERCIAL SECTOR Goal Goal Results These goals will spur actions to transform the energy patterns of California’s largest energy-consuming sector—its commercial buildings 1.New construction will increasingly embrace zero net energy performance including clean, on-site distributed generation [DG], reaching 100 percent penetration of new starts in 2030.  An increasing percentage of the 50-120 million sq. ft./ year of new commercial construction will be progressively more efficient; all new construction ZNE by 2030. 2.50% existing buildings equivalent to ZNE buildings by 2030 through deep efficiency & clean DG.  250 million square feet (1/20th of existing space) per year through 2030 reach deep levels of energy efficiency improvements through whole building approaches. 3.Commercial lighting will transform to high- efficiency, high-performance technologies, pushed by state & national codes and standards.  Utilities will phase out mass market CFL bulb promotions, shifting focus to new technologies & innovations to long-life solutions & higher consumer uptake.

12 12 Beyond “Big, Bold” – What Else? Whole-Building orientation, not “widgets” Advanced lighting, beyond CFLs Transform HVAC market to demand whole systems view and quality installations Recognize industry has broad resource and environmental obligations to balance Marketing based on solid market research on beliefs, motivations, behavior

13 13 Going Forward – Plan as Road Map/Reference Shape better utility programs Reference for: –GHG reduction strategies & regulations; –Legislative initiatives Invitation to non-utility stakeholders to choose their own roles – collaboration or market services. Examples: –HVAC industry alliance –Architect, Engineer, Builder, Green building collaboration on “Pathway to Zero”

14 14 Collaborative Process Observations Stakeholder engagement: –Discussed moving edges needed to achieve bold levels of EE –Identified stakeholders with good ideas, beyond utilities –Asked “How do we stir up motivation, create a market demand, and ensure capabilities to deliver results?” Keys to process success: –Obtained enthusiastic, objective, subject-experts to facilitate –Non-utility stakeholders were a majority –Facilitators drafted strategies & action plans Take-aways: –Was highly productive to engage stakeholders to look at statewide California or larger regions, not just at utility program level – e.g. builders and designers, operators & managers, manufacturers & distributors –Very possible to envision long-term actions

15 15 Shifts in Utility 2010-12 Programs Residential: Pilot Whole House Retrofit Program Commercial: Benchmarking to target and motivate Industrial: Continuous Energy Improvement added Zero Net Energy: A pathway for new construction HVAC: Focus on compliance, quality, market alliance Lighting: Advanced technologies, fewer CFLs Marketing & Outreach: Statewide strategy built on multi-dimensional market research Emerging Technologies: Strategic direction thrust More pilot programs to test out other strategies

16 16 Welcome Other States to “Borrow” From Our Experience Policy Direction “Suggestions” Statewide (or regional) Efforts Capture Wide-Ranging Motivations of End Users Comprehensive, Durable Savings Ensure End-to-End Strategic Plans Much of California’s Plan Directly Applicable Perhaps adjusting targets, timeframes, local actors

17 17 One Question Many Wonder: the Cost? This effort spent about $2-3 million of EE evaluation & planning funds for experts, facilitators, & logistics support -- 5 - 8 cents per capita --, not counting staff time.

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