Energy Efficiency Program Performance Dian M. Grueneich, Commissioner California Public Utilities Commission NARUC Winter Meeting - February 16, 2008  Washington DC

2 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 60 member public-private Leadership Group developed five recommendations and commits to take action Additional commitments to energy efficiency – exceeds 120 organizations Facilitated by US DOE and EPA 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

3 Model Energy Efficiency Program Impact Evaluation Guide Guide was developed because a need was identified for documents that foster best practices and promote consistent evaluations of programs Provides a structure and several model approaches for: –Calculating energy and demand savings –Calculating avoided emissions Published in November 2007 after a year long national committee process

4 Objectives To provide: –A model impact evaluation process that can be used by individual jurisdictions (states, utilities, etc.) with their own specific evaluation requirements –Basic descriptions and guidance, in a policy neutral manner, of evaluation options and issues –List of reference documents and resources Readers should be able to: –Define the basic objectives, structure and evaluation approaches that will be used for their own program-specific, impact evaluation –Using the Guide and other documents referenced in Guide, prepare a complete program impact evaluation plan.

5 The Participants Advisory Group Commissioner Dian Grueneich, California PUC (co-chair) Diane Munns, EEI (co-chair) Chris James, formerly of Connecticut DEP Rick Leuthauser, MidAmerican Energy Company Jan Schori, Sacramento Municipal Utility District Peter Smith, formerly of 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 Ed Vine, Lawrence Berkeley National Lab Reviewers Draft sent to “hundreds” Comments received from about 25 organizations

6 What is EE in CA… Energy Efficiency is California’s highest priority resource to:  Meet energy needs  Save money  Reduce GHG emissions EE is # 1 in loading order

7 What EE Can Generate ….. Source: California Green Innovation Index, 2008 Inaugural Issue – Next 10, page 21.

8 CA’s Approach to EM&V - Protocols California’s Protocols establish a uniform approach for: –Conducting robust and cost-efficient energy efficiency evaluation studies; –Documenting ex-post evaluation-confirmed (i.e. realized) energy efficiency program and portfolio effects; –Supporting the performance bases for judging energy efficiency program and portfolio achievements; –Providing data to support energy efficiency program and portfolio cost-effectiveness assessments; EM&V budgets about 8% of program costs; and, EM&V overseen by CPUC, independent of IOUs.

9 What it takes ….. Integration, Innovation, Collaboration… The “Next Generation” of California EE Long-term (through 2020), statewide utility strategic plan Integration across customer demand resources Real time/interactive Energy Efficiency Web Portal

10 All new commercial construction in California will be zero net energy by Commercial New Construction All new residential construction in California will be zero net energy by 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 homes energy- efficient by 2020.