1. Director, Division of Energy Efficiency
Recent Developments in New England’s Bedrock EE Programs Restructuring Roundtable, June 18th, 2010
Frank Gorke
Director, Division of Energy Efficiency

2. Clean Energy Activity Global Warming Solutions Act
Green Communities Act
IOU Energy Efficiency Programs
Utility Rate Decoupling
Renewable Portfolio Standard
Alternative Energy Portfolio Standard
Building Energy Codes
Green Communities Division
Zero Net Energy Buildings
Leading by Example
Regional Greenhouse Gas Initiative
MA Clean Energy Center
American Recovery and Reinvestment Act

3. MA is #2

4. GCA Efficiency Program Vision
Least cost procurement requirement on IOUs
Programs operated by IOUs and CLC
Three year plans
From fixed budget to entrepreneurial
Expanded role for CHP
Stakeholder involvement
SBC, RGGI, FCM, EERF funding sources
LCP mandate requires much more aggressive savings goals
3 year plans – hopefully, longer horizon, more flexibility
New orientation: outward facing, entrepreneurial, renewed focus on customers
Emphasize what a change it is to go from having to spend a fixed budget as cost effectively as possible every year, to optimizing programs to reach all savings opportunities in all customer buildings.
Our conclusion: The right vision. Multiple benefits of more EE. Good model.

5. Nation-Leading Energy Efficiency Plans
Energy Efficiency Advisory Council (EEAC)
25 public meetings
Chaired by DOER Commissioner Phil Giudice
11 voting members
Business, industry and environmental groups, residential energy users, state environmental and economic development officials, the Attorney General
Program Administrators
EEAC unanimously approved plans (10/09)
DPU approved plans (1/10)
Thousands of pages of documents, spreadsheets
Robust discussion of all issues

6. Progress update: Two years out from the GCA
Great goals, strong plans
Solid, open process
Building off the old programs – good and bad
Some great new approaches
Improving integration of programs and program delivery
Ahead of the goals in some programs; behind in others
Stakeholder involvement, unprecedented collaboration, ON TIME
Robust debate about whether to continue working to improve or let things run their course
DOER is not satisfied; clearly laid out a do-learn-adapt approach at the beginning, and if we need to adapt we should

7. Three-Year Plan: Benefits at a Glance
About 3x the annual savings over 2008
Electric
2.4M Residential, Low Income, and Commercial participants over 3 years
Investment of $1.7B over 3 years
30,000 GWh savings over the lifetime of the measures
Efficiency represents 2.4% of sales in 2012
Gas
920,000 Residential, Low Income and Commercial participants over 3 years
Investment of $483M over 3 years
897M therms savings over the lifetime of the measures
Efficiency represents 1.15% of sales in 2012

9. Efficiency plans Built on Experience
Most ambitious plans in US
3 year Plans
$ 6 billion savings from $2 billion investment
3X per capita CA’s 3 year plan
60 million MWh
Efficiency
40 million MWh
Generation
1991
2012
Source: DOER 9

10. Challenges: MA Reaching and motivating customers Deeper savings
Financing and outside funding
Some program design issues
Doing all the hardest things
Settling at the appropriate level of regulatory and stakeholder review
Have solid plans, need to deliver results for customers
, e.g. residential contractor model
: multifamily, rented space, financing, multiple complicated pilot programs
Best analogy I’ve heard: living in the house as we build it.

11. Challenges: Global
Policy – Federal/State; working relationships; patchwork
Calculations
Free Riders, Spill Over, Market transformation, Useful remaining life
Measurement and verification, end usage data, documented outcomes
TRC; Benefit/Cost
Onerous well established regulatory processes
Appropriate incentives for achieving results; making a profit
Removing disincentives for achieving results
Assigning attributable causation
Delivery
Capitalizing on diverse delivery models – free market approaches
Creating valuable jobs while changing delivery models
Customer interest
Making people care about it when its not economically of interest
End user time frames, split incentives
Making efficiency easy for end users
Tailored to the vast variety of end users
Funding
Shift focus a bit to global setting 11

12. Perceived Efficiency Panaceas
Decoupling
PACE
Economic self interest
Smart Grid, real time pricing
Technology breakthroughs
EERS/ White Tags
Competitive market solutions
Communication
None of these is going to solve all our problems. 12

13. Two Invitational Global Priorities
Buildings
Codes  stringent  stretch  ZNEB
Labeling: asset and operational
Appliances
Beyond minimum standards
One watt stand-by
Two things we ought to all prioritize

14. Closing Thoughts Efficiency matters and will take work
New ideas are needed and existing approaches are valuable – change is hard
Lots of work remains – leadership and partnership needed
Success is highly likely – shared commitment exists
Opportunity to be a showcase – reducing energy waste while growing our economy
In addition to focusing on those two subjects: need to keep at it together to develop the best efficiency programs in the world and deliver results for customers here in MA.
Quick, cheap, easy – not true
Quicker, cheaper, easier – true
Best first fuel – true