National Action Plan for Energy Efficiency eeactionplan Realizing the National Action Plan for Energy Efficiency Larry Mansueti, DOE Stacy Angel, EPA NARUC Summer Committee Meetings July 18, 2007

Released on July 31, 2006 at the National Association of Regulatory Utility Commissioners meeting Goal: To create a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organizations Over 50 member public-private Leadership Group developed five recommendations and commits to take action Additional commitments to energy efficiency – exceeds 90 organizations National Action Plan for Energy Efficiency Recommendations 1.Recognize energy efficiency as a high- priority energy resource. 2.Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource. 3.Broadly communicate the benefits of and opportunities for energy efficiency. 4.Provide sufficient, timely and stable program funding to deliver energy efficiency where cost-effective. 5.Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments. National Action Plan for Energy Efficiency

Current Activities and Next Steps July 31, National Release at NARUC Meeting (Recommendations, Report, Commitments) March 29, 2007 – Leadership Group Meeting June 21, 2007 – Midwest Implementation Meeting June 27 & 28, 2007 – Sector Collaborative on Energy Efficiency Meeting Sept. 28, 2007 – Southeast Implementation Meeting Sept. 13, 2007 – West Implementation Meetings April 30, 2007 – Mid-Atlantic Implementation Meeting April 27, 2007 – New England Implementation Meeting November 2007 – National Update in conjunction with NARUC Annual Meeting Leadership Group Develops Year Two Work Plan; Continues Outreach Work Groups for Year Two Resources and Activities Formed Vision Work Group Formed Year Two Resources Released, including EM&V Guidebook EE-DR Integration Effort Leadership Group to Year Three Activities

Status of Commitments Six new commitments since November 2006 – Includes Public Service Commission of Wisconsin – In discussion with several additional Commissions – Several commitments to be released in coming months Action Plan providing framework for several states and utilities looking pursue energy efficiency More commitments are necessary to meet the Action Plan Goal – New commitments to be announced in conjunction NARUC Annual Convention 2007 in Anaheim, CA – Contact Katrina Pielli or Larry Mansueti

Assistance is available to help advance Action Plan commitments Leadership Group and other organizations will: – Conduct peer-to-peer information sharing and support – Provide education and outreach per their commitments DOE/EPA will: – Continue to facilitate the Action Plan process, including support for resources and activities – Provide technical assistance to state policy makers, including Continue existing assistance to states on various utility efficiency topics Expand work with states for aligning utility incentives w/ efficiency EPAct Section 140 solicitation for state, gas and electic utility partnership to reduce electric consumption (due August 2007) – Share free resources from the ENERGY STAR, buildings, industrial, and clean energy programs to utilities and states Other parties – NARUC – Consortium on Energy Efficiency (CEE) “Ask the Expert”

Key Themes from Year Two Activities Regional Implementation Meetings – Meetings held in New England, Mid-Atlantic, and Midwest. September 2007 meetings in West & Southeast. – Tracking shows states all at different stages of deploying EE policies – Common findings States with high EE investment looking to do more Diverse views on preferred approaches, even within a region Desire for innovative approaches Collaboratives valuable to advancing dialogue and building trust Political environment within states changing for EE, carbon link Need for high-level policy direction to purse EE – Regional meeting helping shape new commitments, EE filings/collaboratives Sector Collaborative on Energy Efficiency – Commercial customers looking to utilities for data consistency and assistance with benchmarking building energy use – Utilities / customer collaboration valuable to future EE efforts

SAVE THE DATE September 13, 2007 Western Implementation Meeting Embassy Suites Hotel 1000 Woodward Place NE Albuquerque, New Mexico Attend this one-day meeting with Western utilities, state utility commissioners, state consumer advocates, legislators, and other key stakeholders, to delve into the specifics of implementing greater energy efficiency through the National Action Plan for Energy Efficiency recommendations. This meeting is being held in conjunction with the Western Public Utility Commissions’ Joint Action Framework on Climate Change. Leadership Group Planning West and Southeast Implementation Meetings SAVE THE DATE SEARUC Fall Summit and Southeast Energy Efficiency Meeting September 27-29, 2007 Westin Buckhead Hotel 3391 Peachtree Road NE Atlanta, Georgia Attend the Commissioners-only SEARUC Fall Summit, which includes a one-day meeting on energy efficiency in the Southeast (Friday, Sept. 28 open to all) sponsored by SEARUC, the Southeast Energy Efficiency Alliance (SEEA) and the National Action Plan for Energy Efficiency. To learn more contact: Katrina Pielli, US EPA,

Currently Available Resources for States, Utilities and Stakeholders National Action Plan for Energy Efficiency Report Energy Efficiency Benefits Calculator Consumer Energy Efficiency Fact Sheet Regional Implementation Meetings - New England, Midwest and Mid-Atlantic – Policy tracking tables – Presentations and meeting summaries Sector Collaborative on Energy Efficiency – Meeting Presentations – Background Paper on Utility Data Availability – Energy Consumption Profiles for Offices, Hotels, Supermarkets, & Retail Stores Draft Educational Briefings

Future Resources for States, Utilities and Stakeholders Available by end of July at – Communications Kit – Building Codes and Energy Efficiency Fact Sheet Available late summer at – Aligning Utility Incentives with Energy Efficiency Investment Paper – Guide on Energy Resource Planning and Procurement Processes – Guide on Conducting Potential Studies for Cost-Effective Energy Efficiency – Guide on Energy Efficiency Evaluation, Measurement and Verification Protocols – Resource database and sample docket/workshop material – Final Education Briefings – Policy tracking tables for West and Southeast Available Fall at – Regional Implementation Meeting Presentations and Summaries for West and Southeast – Action Plan Vision for 2025 – Demand Response and Energy Efficiency Integration

Requested by Leadership Group at last meeting Vision document to: – Describe a future where all Action Plan recommendations are pursued – Chart a course that can be taken, to be modified as issues evolve, possible areas for evolution: Utility role Consistency in EM&V Demand response and grid technologies Regional Coordination – Highlight interrelationship of state EE polices with regional and federal policies, and complementary issues: Carbon emissions Demand response Modernization and maintenance of T&D Exploring goal to be implementing all cost-effective EE by 2025 To be released with commitment updates Fall 2007 (in conjunction with NARUC Annual Meeting) Action Plan Vision for 2025 Renewable energy Clean distributed generation Resource adequacy / reliability

Demand Response and Energy Efficiency Integration Leadership Group wants demand response to be addressed, while keeping main focus of Action Plan on efficiency Year Two Work Plan: – “…determine how to incorporate EE and DR in complementary ways such that customers have increased tools at their disposal with which to understand, manage and reduce their electricity use” Design of work product TBD – possibly two-part: – High-level view of issues in doing both EE & DR, then, – More detailed discussion on key issues (i.e. guides)

EM&V Guide - Objectives Foster best-practices for documenting the energy savings and peak demand impacts of energy efficiency programs Outline best-practice approaches for calculating energy savings and avoided emissions Pull together existing documentation and materials into a single concise document Be policy neutral – respects states that may have already acted Facilitate transparent evaluations and minimize transaction costs Work towards establishing: – Common evaluation definitions and terminology – Consensus on basic evaluation approaches and definitions in order to promote consistent evaluations across jurisdictions The National Action Plan is developing a Guidebook on Model Energy Efficiency Program Evaluation that utilities, ISO’s, states, cities, private companies, and others can use as a framework to define their own “institution-level” or “program-level” evaluation requirements.

Emerging state/regional policies and markets require consistent program evaluation – Markets for peak load reductions that allow bids from demand resources including energy efficiency e.g., New England ISO Forward Capacity Market (FCM) – Increasing interest in Energy Efficiency Portfolio Standards – New state policies for reducing and measuring greenhouse gas (GHG) and other emissions There are widely recognized protocols M&V of energy savings from single projects but similar widely accepted protocols or guidance documents for measuring energy savings from programs do not exist – M&V project protocols do not address issues unique to program evaluation – Utilities, program administrators, regulatory commissions, and policymakers calling for consistent guidance on best-practice evaluation approaches Why is the EM&V Guide Needed?

EM&V Guide Scope: Programs Addressed and Evaluation Focus Program types addressed – Primary focus (i.e., will include detailed guidance): Resource acquisition, downstream energy efficiency programs – Secondary focus (i.e., will be addressed, but not with detailed guidance): Other demand-side programs: Market transformation, codes and standards, demand response, and upstream efficiency programs will be referenced Supply-side programs: renewable energy and combined heat and power (CHP) program Evaluation focus – Primary focus: Impact evaluation, including: kWh, kW, therm savings and avoided emissions – Secondary focus: Process and market evaluations Potential studies Cost-effectiveness evaluation

How the EM&V Guide Can Be Used Utilities, ISO’s, states, companies, and other entities running programs can use the Model Program Evaluation Guide Help to: – Define jurisdiction-specific program evaluation requirements based on best-practice approaches – Inform key evaluation issues that reflect local requirements and constraints (e.g., budgets, uncertainty tolerance, net to gross issues, time period of evaluation, etc.) – Establish consistency in evaluating savings – very important for energy efficiency and emissions reduction programs that cross state or utility borders

Co-chaired by Commissioner Dian Grueneich, California PUC, and Diane Munns, EEI Draft developed by Advisory and Technical Groups To be released in late Summer 2007 How the EM&V Guide is Being Developed Advisory Group – Chris James, Connecticut DEP – Rick Leuthauser, MidAmerican Energy Company – Jan Schori, Sacramento Municipal Utility District – Peter Smith, NYSERDA Technical Group – Steve Schiller, Schiller Consulting (Principal Author) – Derik Broekhoff, World Resources Institute – Nick Hall, TecMarket Works – M. Sami Khawaja, Quantec – David Sumi, PA Consulting – Laura Vimmerstedt, National Renewable Energy Lab

For More Information Stacy Angel U.S. Environmental Protection Agency Larry Mansueti U.S. Department of Energy