1. Demand Response Opportunities in Codes & Standards Prepared by: Amanda Gonzalez, Energy Solutions Energy Solutions| 1610 Harrison Street | Oakland, CA 94612 October 16, 2013

2. Agenda 1.The role that C&S can play in expanding DR 2.State of the Union on DR in Codes & Standards Appliances Building Codes 3.CA perspective: DR code triggers 4.Call to Action: Opportunities for stakeholder involvement to expand DR/ADR practices 2

3. Increasing interest in scaling up demand response and the role for C&S “The time seems to be nigh for demand response and I think the pressure on all of us is increasing to make it work at a scale that hasn’t been done in the past.” “…maybe the way [DR- enabled products] get developed is through appliance standards … or … building standards” Commissioner Andrew McAllister California Energy Commission Workshop on Increasing Demand Response Capabilities in California June 17, 2013 Energy Solutions | DR and C&S Integration3

4. Code can enable participation in DR Code can help standardize practices 6/20/20134 What can code do? It primes the market for broader participation It does not mandate participation

5. C&S can operate in parallel with voluntary efforts to help build the market (as opposed to a hand off) Energy Solutions | DR and C&S Integration Codes & Standards Mass market programs Early commercial ization ET Demos 5

6. STATE OF THE UNION ON DEMAND RESPONSE IN VOLUNTARY & MANDATORY CODE 6

7. Mandatory appliance standards have yet to incorporate DR; voluntary programs can push the market Energy Solutions | DR and C&S Integration Code Body Scope of Coverage Capacity for Mandatory vs. Voluntary Resolutions U.S Congress National MandatoryNo action. Mandatory Can address smart grid if leads to “demonstrable” energy savings. VoluntaryRefrigerators, Freezers, Clothes Dryers – 5% credit/allowance CA Title 20State Mandatory & Voluntary No action. 7

8. Energy Solutions - Standards Coordination8 Anticipated Shift to mandatory requirements with uptake of “Green” Code. Green codes are getting greener… and are increasingly adopted as mandatory Voluntary Reach Codes will continue to prime code

9. Green building codes continue to expand incorporation of DR measures 9 Energy Solutions - Standards Coordination Sector Compliance Mandatory Measures Multi-Pathway Measures Voluntary Measures Residential IECC CA Title 24 IgCC LEED Commercial ASHRAE 90.1 IECC CA Title 24 ASHRAE 189.1 IgCC CA Title 24 LEED

10. DR Provisions primarily focus on HVAC and lighting 10 Code BodyMeasures ASHRAE 189.1 ADR capable to drop load by > 10 % of projected peak; standby power cannot be used IgCC A jurisdiction can elect to require ADR capable of reducing HVAC by > 10% and lighting by > 15% LEED LEED Credit given to buildings that are ADR capable of dropping load by > 10 % of projected peak CA Title 24 200820132016 – CONCEPT ONLY Non-res lighting: DR capability to drop 15% light load for all comm >10,000 ft 2 Non-res HVAC: DR/ADR capable thermostats required for buildings w/o DDC Res HVAC: compliance option to use DR capable thermostat Res: DR/ADR circuitry for 220V load Non-Res: DR/ADR circuitry for fork-lift charging Res HVAC: mandatory DR/ADR capable thermostats

11. TRIGGERS, BARRIERS, & OPPORTUNITIES 11

12. California is well positioned to adopt DR measures into code... may not be the case for other states 12Energy Solutions - Standards Coordination Loading order dictates DR before new generation Large number of customers on Time-of-Use (TOU) rates Title 24 cost-effectiveness evaluated using Time Dependent Valuation (TDV) Utility ADR programs are priming code and serving to build customer confidence around DR & ADR Advanced metering systems and protocols in place for administering events Regulatory Triggers Market Trigger Technology Trigger

13. One of the largest barriers is in mitigating fear, uncertainty, and doubt (FUD) 13 Title 24 - 2008 Communicating Thermostat DR Debacle – Public misinterpretation of code requirement – Codes is/will continue to be written to enable (NOT require) DR participation

14. Successful participation of DR/ADR practices is dependent on stakeholder involvement across several facets 14 StakeholderAction Industry, Utilities, Regulators Establish uniform protocols and terminology for DR/ADR USGBC, ASHRAE, ICC, State Energy Commissions, Utilities Identify new and expand upon existing DR measures Industry, Utilities Enhance technical capacity of appliances, building equipment, and metering systems Utilities, NGOs, Customers Reduce FUD barriers through educational programs and participation in DR Utilities, NGOs, Regulators Advocate regulators to establish DR as a necessary mechanism for grid-load- management

15. DISCUSSION Energy Solutions | DR and C&S Integration15