1. Guidelines for RTF Measure Economics Estimation Methods (formerly Cost and Non-Energy Benefits Guidelines) Progress Update to the Regional Technical Forum November 1, 2011 1 Ryan Firestone, Navigant Consulting

2. Overview Objective: “develop electric energy efficiency measure cost estimating and non-energy benefits guidelines” Key Terms: – Measure economics – All of the quantifiable, monetizable effects that result from an energy efficiency measure. – Measure economic element – Discreet measure economic effects that may have unique methodologies for estimation of values. Values may be either positive or negative for each individual element, depending on the measure. – Measure economic analysis – The full analysis of all measure economic elements, including documentation of data sources, methods, and justification for all elements not evaluated. – Cross-measure standardization – The information (for example, values, datasets, data sources, and/or analysis methods) that is standard across all measure assessments. This data is developed, organized, and maintained by the RTF and stated in the RTF Measure Economics Standard Information Workbooks. 2

3. History History: – Contract awarded: Early August – Subcommittee meetings: Every 3 weeks (3 so far, plus kick-off meeting) – Ongoing: subcommittee voting and comments on measure economic elements 3

4. Process and Status Process: – Get initial input from subcommittee – Develop basic framework for guidelines (measure economic elements, cross-measure standardization) – Discuss each element, collect subcommittee comments and votes – Draft guidelines – Feedback and revision Status: – Submitted draft guidelines to subcommittee on Oct 17. – Submitting full draft guidelines later this week (Nov. 2 or 3) – Aiming for providing revised draft guidelines to RTF in time for Dec. 13 meeting. 4

5. Guidelines Outline 1Purpose and Scope 1.1Key Terms 1.2Statistical and Rigor Requirements 1.3Guidelines Overview 2Measure Economic Analysis 2.1Measure Specification 2.2Element Identification 2.3Measure Economic Element Analysis Process 2.4Justifications for Source and Order of Priority 2.5Reporting Requirements 2.6Analysis Expectations 3Estimation Procedures – Capital Costs 3.1Material 3.2Ancillary Material 3.3Disposal 3.4Labor 3.5Design and Engineering 3.6Permitting and Licensing 3.7Mark-ups 3.8Delivery 4Estimation Procedures – Maintenance 4.1Introduction 4.2Ongoing Maintenance – Labor 4.3Ongoing Maintenance – Material 4.4Ongoing Maintenance – Disposal 5

6. Guidelines Outline 5Estimation Procedures – Operations 5.1Introduction 5.2Electricity 5.3Natural Gas 5.4Propane 5.5Heating Oil 5.6Wood 5.7Other Fuel 5.8Water 5.9Consumable Materials 5.10Disposal 6Estimation Procedures – Ancillary Impacts 6.1Introduction 7Measure Economic Element Analysis Methods 7.1Data cleaning 7.2Estimation approaches 8Measure Economic Maintenance 8.1Cross-Measure Standardization Spreadsheet(s) 9RTF Process for Specifying Measure Economic Elements 6 The latest draft guidelines are posted on the subcommittee website: http://www.nwcouncil.org/energy/rtf/subcommittees/measurecost/

7. Checklist [see Excel file] 7

8. Next Steps November 2 - Submit complete draft guidelines on subcommittee November 9 – Subcommittee meeting, review of draft guidelines December 6 – Submit revised draft guidelines to RTF for review December 13 – RTF meeting – presentation and discussion 8