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ENERGY INTEL First Quarter 2021 AESP.ORG Four Big Developments from 2020 and How They Impacted Our Industry New & Innovative Materials That Improve a Building’s Energy Efficiency Energy Efficiency in the Great Upper Left 3 Utility Pathways to Decarbonization
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Page 1: INTEL - cdn.ymaws.com

ENERGYINTEL First Quarter 2021AESP.ORG

Four Big Developments from 2020 and How They Impacted Our Industry

New & Innovative Materials That Improve a Building’s Energy E� ciency

Energy E� ciency in the Great Upper Left

3 Utility Pathways to Decarbonization

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What’s holding your customers back? Uplight’s primary research reveals how to motivate energy customers from awareness to action.

Learn More!

Learn more at uplight.com/customer-research/

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EDITORIAL TEAMAdeline Lui, AESP, Editor

Chris Baggett, APS

Jeff Ihnen, Michaels Energy

Sherry McCormack, SWEPCO

Tracy Narel, ENERGY STAR®

Greg Wikler, CEDMC

GRAPHIC DESIGNAngela Payton, ModLuxe Print

AESP STAFFJennifer Szaro, President & CEO

Suzanne Jones, Chief Operating Officer

Shannon Britton, Vice President, Finance & Administration

Kim Burtraw, Director, Meetings & Events

Adeline Lui, Director, Marketing & Communications

Amber Stewart, Director, Content & Professional Development

Jennifer Lee, Program Specialist

Amelia Hall, Training Coordinator

Anastasia Claxon, Marketing Coordinator

Kristi Hewitt, Administrative Specialist

BOARD OF DIRECTORSMarie Abdou, National Grid

Ariana Arguello, FortisBC

Chris Baggett, APS

Peter Banwell, ENERGY STAR®, US EPA

Raegan Bond, Dunsky Energy (BOARD CHAIR)

Knox Cameron. DTE

Art Christianson, The Home Depot

Charmaine Cigliano, Orange & Rockland

Sarah Colvin, ecobee

William Ellis, Pepco

Mark Gentry, CLEAResult

Sue Hanson, Tetra Tech

Jeff Ihnen, Michaels Energy

James Linder, TVA

Danielle Marquis, AM Conservation

Sherry McCormack, SWEPCO

Tim Michel, PG&E

Bill Norton, Opinion Dynamics

Laura Orfanedes, ICF

Quinn Parker, ENCOLOR

Brian Pippin, JEA

Laura Schauer, ILLUME Advising

Katie Vrabel, Waypoint Energy

This issue of Energy Intel is sponsored by

Thank you!

Four Big Developments from 2020 and How they Impacted our IndustryBY LUISA FREEMAN

New & Innovative Materials That Improve a Building’s Energy E� ciencyBY MATT LEE

Energy E� ciency in the Great Upper LeftBY JEREMY KRAFT AND JANE PETERS

3 Utility Pathways to DecarbonizationBY AESP CONTENT TEAM

CONTENTS

is produced by:Association of Energy Services Professionals 15215 S. 48th St., Suite 170Phoenix, AZ 85044(480) 704.5900AESP.ORG

Welc� e to the first issue of

It wasn’t that long ago that we said goodbye to our longtime monthly magazine Strategies, and now it’s time to welcome this fi rst issue of AESP’s new publication.

In the future, you can look forward to each quarterly issue taking a deep dive into a hot topic by featuring articles that explore diff erent facets of an issue. The opportunity to contribute to Energy Intel is wide open to all, not just to AESP members. Four times a year we will announce the theme for a future issue and invite you to

contribute your article on the topic. Make sure you are subscribed to AESP’s weekly Energy Feed to receive the announcements.

In the meantime, while we transition to the new format, we hope that you’ll enjoy this issue’s selection of articles for you. We recap the headlines of 2020 and explore how they are impacting the industry; and showcase how three utilities (an IOU, a muni and a coop) are tackling the increasing role of decarbonization in their operations. Happy reading.

ENERGYINTEL

ENERGYINTEL

All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written permission from AESP. The opinions expressed by the authors do not necessarily reflect those of AESP.

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AES

P N

EWS

- pro

of 2

- 3/

1/21

AESP Spring Training

Save the date for AESP’s

Spring Training this May – a

two-week feast of in-depth

training courses focusing

on program planning and

implementation, marketing, EM&V, EE technologies

and professional development. Pick and choose the

courses you need from a wide menu of off erings

(each course ranging from 2-4 hours) to create a

personalized training plan for yourself, all for one fl at

fee. Mark your calendar now for May 4-6 and May

18-20 for this live, all-online, training experience

you don’t want to miss. Watch for more details and

registration coming soon.

Workplace Essentials

• Content Marketing

• Advanced Excel

• Design Thinking

• Tools of Data Analysis

• A Manager's Guide to Blockchain

Leadership

• Leading & Managing Change

• Managing People

• Emotional Intelligence for Managers

• Handling Workplace Confl ict

• Managing Remote Employees

Presentation Skills

• Eff ective Presentations

• Eff ective Public Speaking

Demand Side Management

• Energy Basics

• Utility Fundamentals

• Utility Business Models

• Contract Management

EM&V

• Everything You Wanted to Know About Cost Eff ectiveness

• Foundations of Impact Evaluation

Two New Ways to Get Your Training

For those who prefer learning at their own pace, AESP is soon launching 12 new

asynchronous training courses to complement our six highly popular courses,

bringing the total options for convenient, aff ordable online training to 18. Soon,

you’ll not only be able to take courses to solidify your technical knowledge in DSM and EM&V, but also

complement them by honing your skills in leadership, presentations and other workplace essentials.

Professional Development – Your Way

NEW! NEW!

NEW!

News

Association of Energy Services Professionals2

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They say that hindsight is 2020, but looking back at last year, clarity remains elusive. No one could have predicted the complex set of events that rocked our world in 2020. From the global novel Coronavirus pandemic to a national reckoning on systemic racism, to the cataclysmic fi res in the West Coast and hurricanes in the East Coast, virtually everyone has been impacted one way or another -- personally, professionally, and sometimes tragically, but certainly profoundly. Cap it off with a contentious election and it is no wonder we have trouble making sense of it all.

While 2020 began with an economically robust and seemingly comfortable fi rst quarter, the rollercoaster that was 2020 accelerated non-stop with one major challenge to the next in successive events that were often scream-worthy.

Now that the ride is over, this article attempts to summarize four of the most impactful topics that challenged the energy effi ciency industry in 2020, refl ecting on key lessons learned and potential long-term implications.

■ THE PANDEMIC

■ HOUSEHOLD ECONOMIC STABILITY

■ DIVERSITY, EQUITY AND INCLUSION

■ CLIMATE EVENTS

The good news for our industry is that energy effi ciency, clean energy and sustainability have never been more relevant. The energy transition that was already taking place continues. In fact, carbon reduction trends not only withstood the onslaught of challenges we had to face in 2020 but are even more imperative going forward. Industry recruiters indicate that energy effi ciency and clean energy jobs are in high demand and will likely be so for the continuing future.

In each section we describe the 2020 issue and how it relates to energy effi ciency (EE) and sustainability. Then, we off er commentary on the way forward from interviews with several industry subject matter experts.

The PandemicThe pandemic had a profound impact on the way people lived and

worked in 2020. That in turn has impacted energy usage patterns, utility programs, and technology investments in energy effi ciency. Energy usage patterns shifted dramatically during the early shutdowns and temporary closures of businesses and schools, with some establishments maintaining signifi cantly lower levels of usage and demand even when things opened back up. As restaurants allowed for limited capacity, and some businesses shifted to online ordering-only, others closed their doors permanently. Signifi cant impacts were felt in the retail, offi ce, entertainment, hospitality, and educational sectors to name just a few.

FOUR BIG DEVELOPMENTS FROM 2020 and How they Impacted our Industry

By Luisa Freeman

3

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How the Pandemic relates to EE and Sustainability

The table below lists just a few of the most obvious impacts from the pandemic and their subsequent eff ects on energy usage, programs, and industry.

1 Craig Farrand, article: ‘COVID-19 Update: The continued impact of the pandemic on energy use,’ DNV GL article.

2 Lisa Prevost “Retroactive energy efficiency loans offer pandemic lifeline for some businesses;” 11/23/2020 Energy News Network

The CARES Act helped temporarily stem the tide of layoff s and business closures by providing loans to cover some business costs. Even so, many non-essential capital investments were postponed, in part due to contractions in fi nancing. Energy effi ciency programs for C&I customers saw some drops in investments in non-essential technologies, though some recovered toward meeting 2020 goals as commitments from earlier in the year were met.

One energy effi ciency program provider reported: “In nearly every program, our managers have had to accelerate their forecasting to deal with constantly moving goalposts: the closing, opening and re-closing of retail businesses; lagging re-employment, which continues to keep workers home; uncertainty about the opening of schools, colleges and universities; and remote or limited government operations.” 1

Crisis situations often breed innovation, as evidenced by the accelerated switch to remote energy audits and inspections.

One green light in the darkness of business investments can be seen in the retroactive application of Commercial Property Assessment Clean Energy loans (C-PACE). With competitive interest rates and long-term repayment schemes, these loans enabled businesses that made a range of energy effi ciency investments to recoup those funds and use them to cover operational costs. “Since the pandemic hit, lenders have begun marketing the loans as a way of helping business owners free up capital.” While not available to everyone, an article in Energy News Network notes that “Most of the two dozen or so states that have active C-PACE programs off er a retroactive option, though the look-back periods vary in length.” 2

Primary impact

Energy-related impacts

Potential long-term consequences

Business curtailments

• Immediate interruptions in energy usage from temporary shutdowns

• Higher residential usage due to working from home

• Less commuting from furloughs and employees working from home

• Lower occupancy, shift changes as businesses restart

• Postponed investments• Higher energy burdens

from lost incomes• Fewer miles traveled, fewer

new car sales

Business closures

• Lost loads/energy provider revenue

• Lower DR capacity from reduced production schedules

• Increased layoffs and unemployment

• Postponed or cancelled capital investment

• Changes in building energy usage

• Higher energy burdens from lost incomes

• Reduced demand for technologies in some businesses and industry

Working from home

• Increased home office technology purchases

• Demand for improved connectivity at home for work

• Home renovations • Increased demand for

reliability

• Higher plug load usage• Increased opportunity for

DR• Investments in tech for

improved indoor air quality• Higher interest in home

energy storage + PV technology

Remote schooling and worship

• Demand for improved connectivity at home for school by teachers and students

• Lower demand from cancelled sports, worship, and evening activities

• Need for improved lighting and audio-visual tech (e.g. home studio capability)

• Seasonal and off-peak load reductions

Figure 1: Clean Energy Industry Impacts from the Pandemic

Made silly videos

Baked bread

Did puzzles

Created veggie gardens

Ate a lot

Worked out

Worked from home

Cleaned and disinfected

Drank

Binge-watched TV

Voted

Sewed

Learned online

Raised chickens

Took a lot of walks

Masked-up

Zoomed & Facetimed

Upped our cooking game

Dressed casually

Shopped online

Learned to appreciate family

What we did in 2020

Association of Energy Services Professionals4

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Where we go from here

There may be a silver lining to the pandemic-related challenges for the clean energy industry. Here are a couple of consoling thoughts:

Electrifi cation of Transportation. Electric utilities are understandably concerned with load losses from business closures – some of which may be permanent. Over time, buildings are likely to be repurposed from offi ce spaces and retail businesses to other uses, such as fulfi llment centers, data centers or housing, though some will go vacant. Even so, according to Rich Barnes, Regional President, Energy North America, DNV GL, the long-term transformation of the transportation sector to EVs will more than make up for any losses in load from business closures. He points to DNV GL’s 2020 Energy Outlook analysis which concludes: “There is a massive, ongoing electrifi cation of the global energy system; where electricity is less than 20% of the energy mix today, it will more than double its share by 2050.” 3

Remote Program Service Delivery. The transition to online applications and remote services such as

energy audits and inspections, that was already taking place accelerated during the pandemic. Many on-site programs shut down temporarily, as face-to-face services such as in-home energy audits were stopped in the early days of the pandemic while the industry regrouped. The exceptional quality of cell-phone camera technology makes the transition easier as program inspectors can virtually walk homeowners and energy managers through a building to check on opportunities, and installations remotely with little loss of accuracy. Importantly, remote delivery of services has other upsides: it has dramatically lowered program costs from reduced travel and signifi cantly increased scheduling capacity. As Barnes notes, “It is much easier to get 30 minutes of a decision-maker’s time for a Zoom call than it was to secure a face-to-face meeting on their calendar, with all the costs in time, travel and money that entailed.” 4 If these trends continue post-pandemic, there may be considerable savings in program delivery costs.

3 https://eto.dnvgl.com/2020/highlights/foreword.

4 Interview with Rich Barnes, Nov. 24, 2020.

5 Energy burden is calculated as a household’s energy costs as a percentage of household income.

6 Dr. Brown was a presidential appointee on the TVA Board of Directors for two terms.

7 The American Reinvestment and Recovery Act under the Obama Administration that provided millions of dollars in relief and grant funds for energy related investments to states and tribal entities including the Energy Efficiency and Conservation Block Grant program, State Energy Program and direct grants to utilities for smart grid transition projects.

For residential customers, however, the opportunity to engage with household members can be critical, with face-to-face interaction important to providing education on the connection between energy bills and appliance usage and household behaviors. Helping families in need was – and will continue to be – a heavier focus in 2021. Weatherization and other in-person residential programs did not drop off entirely, as some resumed after safety protocols for on-site work were put into place. That’s a good thing as we come to the next challenge of 2020…

Household Economic Stability

While businesses lost revenues and employees, many households have at least one member that has lost a job either temporarily or permanently. The trickle-down eff ect of business closures and job losses has meant less spending at retail establishments and restaurants, which in turn resulted in more layoff s. Hopefully the continuous rollout of vaccines will turn things around for households by the fall. Meanwhile, for impacted households, energy burdens have been climbing.5

Marilyn Brown, Regents' Professor in the School of Public Policy at Georgia Tech and former energy regulator under President Obama 6 notes: “Energy burden is as high as ever despite billions of dollars from ARRA7, and other initiatives. There are more income qualifi ed households in need, evidenced by the high unemployment and food insecurity issues prominent in the news. With the expansion of work and schooling being done remotely, it means that home-based activities are going to cause higher residential energy bills.”

How Household Economic Stability relates to EE and Sustainability

Utilities and other energy providers lost sales and revenues and found many more residential customers unable to maintain payments. State moratoria on shutoff s and utility payment arrangements in some jurisdictions have helped households temporarily, but these only serve as a stop gap to what may be a looming crisis in households’ ability to pay their bills going forward. Moratoria on evictions are ending, which will exacerbate reductions in energy usage and payments, while

Figure 2: Energy Burden increased in 2020 for many

Figure 2: Energy Burden Increased in 2020 for Many

How Household Economic Stability relates to EE and Sustainability

Utilities and other energy providers lost sales and revenues and found many more residential customers unable to maintain payments. State moratoria on shutoffs and utility payment arrangements in some jurisdictions have helped households temporarily, but these only serve as a stop gap to what may be a looming crisis in households’ ability to pay their bills going forward. Moratoria on evictions are ending, which will exacerbate reductions in energy usage and payments, while increasing energy burdens. Job losses contribute to delinquency in not only payment of energy bills but in rent and mortgage payments. That in turn was already having implications for safety net programs in 2020, such as the federal Low Income Home Energy Assistance Program (LIHEAP) and other income-eligible energy efficiency programs offered by utilities and energy services providers.

Research conducted by the Smart Energy Consumer Collaborative (SECC) in 2020 provides some insight into two groups – those with a propensity to embrace efficiency behaviors, and those on low to fixed incomes who were struggling. 8 Nathan Shannon, Deputy Director of SECC shared that at the beginning of the pandemic, the interviews with the first group revealed that they went on a tech adoption freeze due to the pandemic and focused more on saving money while things were uncertain. The second survey – which targeted low to moderate income customers – conducted after the pandemic really set in revealed more fear: 39% of customers worried about paying their utility bills and other basic needs. Interestingly to note -- there was more interest in smart energy tech and electrification even among the lower income group over previous surveys. Shannon pointed out: “Making your home as technology adaptable as possible makes sense no matter what group you are in – our research showed that interest was high. As people are making renovations in their homes, the connected home has grown in interest, as work and school activities shift to home.”

8From Zoom interviews conducted in April/May with three SECC-defined customer segments: green innovators, technology savvy and the movable middle. This was followed by a survey of low-income households in August/September 2020. For full reports see SmartenergyCC.org.

Household incomes dropped

in 2020...

...while residential energy usage

increased

= higher energy burdens

www.aesp.org | first quarter 2021 5

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increasing energy burdens. Job losses contribute to delinquency in not only payment of energy bills but in rent and mortgage payments. That in turn was already having implications for safety net programs in 2020, such as the federal Low Income Home Energy Assistance Program (LIHEAP) and other income-eligible energy effi ciency programs off ered by utilities and energy services providers.

Research conducted by the Smart Energy Consumer Collaborative (SECC) in 2020 provides some insight into two groups – those with a propensity to embrace effi ciency behaviors, and those on low to fi xed incomes who were struggling.8 Nathan Shannon, Deputy Director of SECC shared that at the beginning of the pandemic, the interviews with the fi rst group revealed that they went on a tech adoption freeze due to the pandemic and focused more on saving money while things were uncertain. The second survey – which targeted low to moderate income customers – conducted after the pandemic really set in revealed more fear: 39% of customers worried about paying their utility bills and other basic needs. Interestingly there was more interest in smart energy tech and electrifi cation even among the lower income group over previous surveys. Shannon pointed out: “Making your home as technology adaptable as possible makes sense no matter what group you are in – our research showed that interest was high. As people are making renovations in their homes, the connected home has grown in interest, as work and school activities shift to home.”

For both the unemployed and those still employed through the pandemic, the transition to working from home combined with stay-at-home orders has meant increased energy usage. Evaluators and analysts looked at residential load patterns from March through October 2020 to the prior year’s and found not only marked increases in the amount of residential weekday usage but when it happens over the day. To the extent that these new patterns persist, this has implications for demand response programs.9

Without a doubt, utilities, energy service providers, local governments and non-profi ts will be shifting their programs and services as the new normal in household energy consumption and demand becomes evident post-2020. Here are some areas where we can help:

Where we go from here

It Takes a Village. Communities truly rose to the occasion in 2020 to help families in

need, ranging from food distribution to helping to meet energy needs. Federal safety net programs across the U.S. saw increased demand for standard payment assistance to help pay energy bills, and the CARES Act provided increased funding in 2020 to help meet the need. Community action agencies have been working on overdrive to distribute not only funding, but educational materials and kits to help households reduce energy consumption as they work and school from home. And more community service providers such as Habitat for Humanity expanded their energy related assistance by doing more home repairs as construction on new homes stalled due to the pandemic. This work will continue into 2021.

Demand for Smart Technology. As SECC’s research suggests, people shifting to working and schooling

from home quickly realized their need for increased connectivity. Bandwidth became an issue with computers running eight hours nonstop for work and more laptops being used by students during the day. Mid-day weekday electricity usage increased with air conditioning

8 From Zoom interviews conducted in April/May with three SECC-defined customer segments: green innovators, technology savvy and the movable middle. This was followed by a survey of low-income households in August/September 2020. For full reports see SmartenergyCC.org.

9 See for example DNV GL’s Covid 19 special reports by Craig Farrand highlighting analyses done by Joseph Lopes. https://www.dnvgl.com/publications/covid-19-u-s-market-implications-173436

keeping families cool at home, while usage dropped in offi ces and schools. There was increased demand for home offi ce equipment, especially peripherals that keep us connected. All these additional electronic gadgets showed up in changing residential load profi les in 2020 over the same months a year ago. This demand for better home equipment highlights the digital divide, where not everyone can aff ord to install rooftop solar or trick out their home offi ces. Storage technology for residential markets, for example, is still prohibitively expensive, as noted by Brown, who as an educator needing reliable power, installed a Tesla Powerwall (which sells in the range of $10,000). This issue leads to the next challenge we faced in 2020…

Diversity, Equity, and Inclusion (DEI)

Unnecessary deaths got our collective attention in 2020, in addition to those due to COVID-19. 2020 saw several tragic deaths of Black Americans at the hands of police. The Black Lives Matter movement that ensued quickly shaped discussions around the U.S., the globe and in our energy industry -- around racism, diversity, equity, and inclusion. These events spurred a deeper collective look into the reasons behind the imbalances in poverty, housing quality, and leadership opportunities between diff erent races that still exist today. Diversity issues have been part of our conversations this year at our jobs, with colleagues, friends, and family, probably more than any previous year since AESP started. The energy effi ciency industry has historically been dominated by white males and underrepresented by those of color, but that has been changing with each successive year as refl ected in the increasing diversity of AESP’s membership and conference speakers. We celebrate the opportunity to expand those gains in our industry, since – as recruiters will attest - all hands-on-deck will be needed to meet the demand for energy effi ciency and clean energy industry workers in the next few years.

Association of Energy Services Professionals6

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In addition to refl ecting on our own workplaces, 2020 confi rmed inequities already known about households as consumers of energy. Shannon again shared fi ndings from SECC’s 2020 study that shed light on important disparities in attitudes, access, and behaviors around energy, summarized in the above table taken from their webinar:10

A November article by Matthew Shaer in New York Times Magazine titled “When the Virus Came for the American Dream,” pointed to the fi nancial challenges that households faced nationwide in 2020: “One in three white households in the United States are dealing with severe fi nancial problems related to the pandemic. By comparison, 60 percent of Black households and 72 percent of Latino households are similarly struggling.”11

How DEI relates to EE and Sustainability

In 2020, businesses started identifying and combating systemic racism in the workplace through initiating sensitivity training, task forces and committees, webinars, and conversations. While some are pulling off the Band Aid, others are developing plans for addressing the challenge beyond tokenism, for example, in hiring and promotions. However, special initiatives created in response to a crisis are often well meaning but short lived. Giving DEI offi cer level attention and making a management position responsible for progress was a good start in 2020. Pamela Fann, Director of Membership & Diversity Integration at Southeast Energy Effi ciency Alliance is a Certifi ed Cultural Diversity Professional and Trainer (CDP, CDT). She knows that to eff ect real change, “you’ve got to give it a budget.” As a former Employee Resource Group board offi cer at The Coca-Cola Company dealing with diversity, equity, and inclusion issues, she has the credentials to know that 2020 was diff erent. Diversity really expanded as a topic in demand. More than webinars and trainings in 2020, she experienced increased calls on the part of members for direct help and consultation in identifying the types and level of DEI issues in companies and developing a plan to address them.

10 Underserved Communities: Racial Disparities, Smart Energy Consumer Collaborative, October 2020 webinar; study conducted by Maru/Matchboxvia a 15-minute online survey among Americans who are the energy decision-maker in their household with a household income of $50,000 or less. See SmartenergyCC.org for full report. The survey was sponsored by the Robert Wood Johnson Foundation, the Harvard T. H. Chan School of Public Health and NPR. https://www.nytimes.com/2020/11/02/magazine/covid-business-atlanta.html

11 The survey was sponsored by the Robert Wood Johnson Foundation, the Harvard T. H. Chan School of Public Health and NPR. https://www.nytimes.com/2020/11/02/magazine/covid-business-atlanta.html

12 Available at https://www.usenergyjobs.org/

Generational change will inevitably result in more diversity in the industry in the future, but we can do more in the interim. Passive approaches to making our workplaces look more diverse like the populations we serve, are being replaced by intentional support and recognition of existing talent.

The U.S. Energy and Employment Report 202012 showed energy effi ciency is one of the fastest growing job markets with 8 percent growth since 2018, while more than 78 percent of those new hires were white and more than 53 percent male. Less than 12 percent are African American, and while the Hispanic race category has grown, it has been mostly in the construction sector. Diversity is lacking in the professional sector placements. The report noted that EE is the least diverse job market, even while all sectors in EE have said that they have had trouble in hiring.

Where we go from here

Lead by Example.We can and should encourage minority enrollment in energy-related

degree programs and step up the mentoring and promotion process that could make our industry a beacon of change.

Barnes of DNV GL feels there is an opportunity for the industry to take the lead in making positive, serious change. We led the way in energy effi ciency then other countries followed.

Businesses and organizations in the last decade were all about “customers fi rst,” but according to Barnes, the new mantra in the age of Google and Facebook is that 2021 will be about “employee comes fi rst” -- the argument being that if your employees are happy, they’ll take care of the customer. But to understand the customer, you must be like the customer. Hiring and promotion practices in our industry must continue making a concerted eff ort to recruit a broader base of employees that better refl ect the racial rainbow of our customers.

Overall, people of color have greater financial and household struggles.

People of color, especially Black people, have significantly higher electricity bills and increased concern about their finances than white people. Contributing to these strains, they are also more likely to be renters living in multi-family dwellings.

COVID-19 also has a greater impact on people of color.

With increased financial strain, people of color are more often than white people making di�cult financial choices due to COVID-19. They are facing increased concerns about their electricity bill and are looking to their providers to o�er rate adjustments or bill deferments to help.

Attitudinally, they prioritize the environment more.

The environment is an area of concern and influences how people of color vote more than white people. People of color also have heightened concerns about air quality and pollution, especially among Black people.

Their value for the envionment is also linked to an increased interest in smart energy technology.

People of color have a much stronger interest in smart energy technology than white people. They have very strong interest across all smart energy technologies and are more willing to share their energy data in exchange for services.

People of color face more barriers to using energy e�ciency assistance programs.

Cost is a particular barrier when it comes to energy e�ciency assistance programs. Upfront costs and lack of information are more of a challenge for people of color than white people. This may be due to a higher proportion of them qualifying as low income.

01 02 03 04 05Figure 3: Key Findings from SECC Study on Underserved Communities and Racial Disparities

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Mine Your Data.Data analytics took a big leap in 2020 as more utilities and other

energy effi ciency program providers took a deeper look into data, both theirs and publicly available sources, combined them and analyzed them for greater insight into who is being reached by our various energy effi ciency and clean energy technologies initiatives. Software such as PowerBI and Tableau13 provided the opportunity to better visualize pockets of underrepresentation in demographic groups as well as geographic locations that we serve. Analyses that would have taken weeks to carry out back in the early days of AESP now pop out on our screens literally with the push of a button. That makes the disparities as well as the opportunities more obvious and, in a positive way, gives us a path forward. Marketing and market research is now embedded in our program tracking systems, and marketing can be much more eff ective at fi nding eligible populations for services.

In July 2020 AESP held a webinar where speakers from ComEd, PECO and TVA discussed “The Pandemic’s Hidden Victims: Disadvantaged Communities and the Energy Effi ciency Programs that Serve Them.” Evaluations and market studies in 2020 revealed the underrepresentation of households of color in programs and technology adoption, where at the same time the need for reducing energy usage and bills is highest. The good news is that the explosion of data and the dramatic drop in the time it takes to analyze it has facilitated an expansion of how we value energy effi ciency and clean energy, with evaluators looking at impacts in a more holistic way. By recognizing the eff ect of energy behaviors on health, safety and household stability – non-energy impacts (NEI) – we’ve started getting a better grip on the issues and how to solve them. Even more evident in 2020 were disparities in the experiences of communities of color due to the next topic…

Climate EventsFrom fi res in the West to tropical storms and hurricanes in the

Southeast, major climate events signifi cantly impacted us in 2020. Buildings, facilities, and infrastructure have taken a beating, with some completely destroyed. While losses for impacted families have been the most unfortunate outcome, the rebuilding in those areas hard hit by fi res and storms undoubtedly involves heightened consideration of energy sources, effi ciency, and sustainability -- such that what is being replaced does not contribute to carbon emissions and can better withstand the inevitable next event.

13 Power BI is a Microsoft data analysis and visualization product. Tableau is another data analysis and visualization product/geographic information system (GIS) made by Tableau Software, LLC, a Salesforce Company, and has an opensource Public version and Tableau Desktop Professional Edition.

14 As quoted in https://www.rff.org/publications/reports/climateinsights2020-natural-disasters

15 MacInnis, Bo and Jon Krosnick, Climate Insights 2020: Natural Disasters - Surveying American Public Opinion on Climate Change and the Environment. https://www.rff.org/publications/reports/climateinsights2020/

These types of climate events are regional in nature, with fi res in the West having done more direct damage to energy infrastructure and non-residential buildings. Indirectly however, virtually all energy users were negatively impacted by sustained power outages, degraded air quality and record-breaking heat. Historically, California has been known for mild and breezy summers, which means many houses lack air conditioning. Even those with rooftop solar arrays were often unable to tap into their home-grown power because of grid issues or a lack of on-site storage. In the Southeast, storms were concentrated in Louisiana and other coastal areas giving little time for recovery eff orts to gain traction. These storms, while shorter lived than the fi res in the West, had more signifi cant direct impacts on housing and non-residential buildings and facilities, further contributing to the burdens of 2020.

How Climate Events relate to EE and Sustainability

California experienced several sustained outages in 2020 as a preventative measure to avoid exacerbating what had already been a record year for wildfi res. The drastic measures while necessary for safety and eff ective grid management called upon already-weary businesses and households to persevere while staying home due to the pandemic. For some families in areas like Santa Cruz, the combination of the lack of air conditioning and high summertime temperatures pushed people to the brink as windows remained shut to keep ashes from the fi res from creeping in. This led to increased demand for air quality equipment and reconsideration of HVAC equipment and settings in homes and buildings. As noted by Matthew Cohen, Energy and Sustainability Industry practice lead and partner at Direct Recruiters Inc. there is a huge labor demand for energy effi ciency tradespeople who understand not only the mechanics of today’s technologies but also the computer software systems that drive them and connect them to the grid.

According to Research for the Future (RFF) Senior Fellow Margaret Walls: “Natural disasters do not aff ect everyone equally. The concept of environmental racism outlines the idea that environmental burdens, whether it be pollution exposure or inadequate infrastructure, disproportionately aff ects communities of color. In many cases, these groups have been pushed into undesirable and vulnerable locations across the country.”14

Recent fi ndings from an RFF September 2020 survey of households around climate events revealed that lower income families (<$35,000 annual income) are more supportive of government assistance to addressing climate challenges than those making more than $35,000 annually.15

Where we go from here

Expand the Defi nition of Value. While 2020 advanced the industry’s study of non-energy impacts

of energy effi cient technologies and behaviors, more needs to be done to capture their impact on resiliency to climate events. Regulators increasingly consider valuing the installation of energy effi cient and connected equipment for their contributions toward lower bills, carbon reduction, and demand response benefi ts, but should also consider how technologies can contribute to building resiliency. Where climate disasters persist, for example, perhaps we should consider not just repairing damaged manufactured housing but fi nd ways to relocate households into new generation units that can better withstand climate related events. Building energy audits started to look at the location of equipment and the presence of back up power capability in the

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wake of these more devastating and frequent storms.16 The continued introduction of decentralized clean energy technologies will further impact buildings and distribution lines, while at the same time off ering both opportunities and challenges for grid management. There are likely to be bigger and more frequent tests of our building structures, systems, and facilities from climate related events such as those experienced in 2020.

Feed the Pipeline. We need more people in our industry to face these challenges.

According to the 2020 U.S. Energy and Employment Report17 employers added 54,000 new energy effi ciency jobs in 2019 for a 3.4 percent increase over the prior years. This contributed to a total of over 2.38 million EE jobs in the design, installation, and manufacture of energy effi ciency products and services, and 2020 was on track for continuing the trend toward increased hiring in the sector. When the pandemic hit full force in March, some companies experienced furloughs and layoff s as in-person services were halted, at least temporarily. However, the trend toward delivery of online services – online applications, remote energy audits and inspections -- merely accelerated. Thus, despite the pandemic, employment in the energy effi ciency industry remained robust in 2020 and promises to continue modest growth trends. According to the EFI report: Overall, fi rms covered by the survey anticipated roughly 3.1 percent employment growth for 2020, down from 4.6 percent projected growth last year [2019].

16 For example, DNV GL’s B-READY tool that was tested through a NYSERDA grant on selected New York City Public Housing Authority buildings post Hurricane Sandy.

17 Available at https://www.usenergyjobs.org/

Cohen, of Direct Recruiters Inc., is more bullish on hiring in EE and HVAC as 2020 has shown there is more demand than can be met by qualifi ed workers. He sees the combination of an aging workforce plus new smart technologies that require both practical engineering skills and IT competency pointing to a dire need for training in the trades. While those with professional engineering degrees and graduates of sustainability programs were easily placed in 2020, the gap is in the trades for installing and servicing the next generation of clean and connected energy technologies. More climate events like those we experienced in 2020 will only increase that need.

Interconnection as a Silver Lining

Interconnectivity in our industry usually refers to how project developers interconnect distributed generation systems to the grid. Instead, here we want to underscore the “interconnection” between the challenges we faced in 2020. That interconnection may provide some common ground we in the energy effi ciency and sustainability industry can build upon. Consider, for example how the pandemic and climate events both highlighted the inequities that are at the heart of the Black Lives Matter movement. These realities in turn relate to housing quality, energy usage and utility bill payments, which further impact government safety net programs and utility low-income energy effi ciency programs.

In another example, the realities of more powerful and frequent catastrophic climate events impact everything from grid stability to technology options regarding battery storage and back-up power to accelerating the transition to electrifi cation in the transportation sector. That has implications for all of us whether you are working in the public or private sectors.

One consistent message that the media has made clear is how interconnected the issues we faced in 2020 are, and how they impact all of us, including the energy effi ciency and clean energy industry. There is strong agreement going into 2021 that solutions must include being effi cient, clean in our energy choices and mindful of resiliency going forward – for ourselves, our communities, and our collective future.

About the authorLuisa Freeman is a Clean Energy subject matter expert with over 30 years of experience in energy effi ciency, renewable energy technology and distributed generation program planning and evaluation for government and private industry clients. She has

served on the boards of the Smart Energy Consumer Collaborative and local chapters of AESP. She holds degrees in Economics and Economic Geography.

What we DIDN’T do much in 2020…

Drive

Gather

Commute

Workout

Eat out

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In order to respond to a global imperative—limiting potentially catastrophic global warming to 1.5 degrees Celsius above preindustrial levels—the energy sector is pursuing net-zero carbon emissions by 2050. In line with that goal, utilities, municipalities, and states have committed to decarbonizing their power systems. At the same time, customers want low-cost, reliable electricity. Is it possible to achieve both and, if so, what is the magic formula that will get them there?

Success hinges on customer engagement. The core components of utility decarbonization are renewable supply, energy effi ciency, electrifi cation, and demand fl exibility. The latter three of these require the customer to take some kind of action, whether that be reducing consumption, switching to an electric-powered version of equipment or vehicle, or opting into a time-of-use (TOU) rate, just to provide a few examples. Some of these actions are simple and free, while others are time-consuming and expensive. No matter where the action falls on the spectrum of ease and cost, it requires educating customers and infl uencing their behavior.

Decarbonization provides opportunities to create an electricity system that connects communities in ways that drive down greenhouse gas emissions while improving reliability and aff ordability. All of these pathways have one common thread—the electric utility that serves the complete power needs of its customers. Utilities are expected to have the greatest impact on driving a full transition, as they account for most electricity sales and serve approximately 75 percent of electric customers.

We talked to executives at very diff erent utilities on how they are handling the challenges associated with decarbonization eff orts.

Lon Huber, Vice President, Rate Design and Strategic Solutions at Duke Energy Corporation, was named Utility Dive's Innovator of the Year in 2018. His "fi ngerprints are found on a lot of the modern energy rates and plans for state mandates," the publication noted, and "policy packages

With decarbonization strategy, one size doesn't fi t allWritten by AESP Content Team

Lon Huber Bryan Hannegan Linda Ferrone

CONQUERING CARBON 3 Utility Pathways to Decarbonization

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and concepts he has worked on have been picked up by regulators, state legislators and utilities from Arizona, to Hawaii, to the Northeast." Huber's current challenge is making Duke—one of the largest electric utilities in the country—a leader on the decarbonization front.

Bryan Hannegan is President and CEO of Holy Cross Energy, a not-for-profi t, member-owned electric cooperative providing electricity and energy services to some 60,000 members in Colorado. Headquartered in Glenwood Springs, CO, Holy Cross Energy is leading the responsible transition to a clean energy future with its "Seventy70Thirty" plan aimed at obtaining 70 percent renewable and clean energy for its members by 2030. For its eff orts, the company was named 2020 Electric Cooperative of the Year by the Smart Electric Power Alliance.

Duke EnergyThe North Carolina-based utility is well on its way to making the

clean energy future a reality, says Huber, who dashes off some of the company’s impressive milestones to date. Already, Duke can claim an estimated 39 percent reduction in its carbon emissions from 2005 levels, in part because it has taken more than 50 coal plants—roughly 6.5 gigawatts of capacity—off line since 2010. Adding approximately 8 gigawatts of wind and solar to Duke’s renewable portfolio has advanced its eff orts even further. In fact, Huber proudly points out, North Carolina is actually second only to California in terms of solar capacity. While these accomplishments demonstrate the utility’s strong commitment to decarbonization, he recognizes that this is only the beginning of the journey.

“As we all know, climate change is a huge problem,” Huber stresses, “and we can’t just rest there.”

Going forward, he says Duke has set some aggressive targets for itself. Enter the 2030 goal. Under it, the utility is pursuing a 50 percent carbon emissions reduction by that year, putting it on track to meet the Holy Grail of net-zero carbon emissions by 2050. On top of that, what

many may not realize is that Duke also has a net-zero emissions goal for methane for its gas company as well. It is utilizing drones and leveraging other technologies to detect leaks and prevent methane emissions that contribute to greenhouse gases and climate damage. That initiative is also targeted for 2050.

Duke isn’t just serving up lip service, according to Huber, who describes the various ways the utility is following up on those targets with action. For one, expanding its pumped-hydro facilities for energy storage. Another case in point, deploying batteries and other forms of energy storage across its jurisdictions. Duke is even linking executive compensation to environmental performance.

Another exciting component is the company’s progress with electric vehicles, which recently got a boost from regulatory clearance for a

Image from Duke Energy website – Source: https://www.duke-energy.com/our-company/environment/global-climate-change

Image courtesy of Duke Energy

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vehicle-to-grid school bus pilot. Investments in demand response (DR) are also helping march Duke toward its climate goals.

When Huber arrived at the utility about a year ago, one of the fi rst orders of business was to commission a study on how the company could achieve some measure of peak demand reduction in the winter. The objective was to couple rate design with new technology such as smart thermostats, that would operate as controlled platforms. The research, which demonstrated strong results during the morning hours, is in its fi nal stages; but the linked bring-your-own-thermostat initiative has already been approved for rollout in North Carolina and South Carolina. Customers who purchase the thermostat and enroll it in DR get an upfront incentive that defrays the cost of the device to the point where it is essentially free. Even if a customer already has a smart thermostat, they are eligible for a $90 incentive—which is, for some users, about the same as their monthly bill. “We’re really excited about it,” Huber says.

“We’re hoping it gets a lot of uptake so that we start to have essentially a virtual power plant, if you will, of these smart thermostats all around our service territory.”

Huber has been busy since taking on his fi rst utility job after years of policy work. Another project put before regulators involves a game-changing settlement in South Carolina centered around solar net metering. With participation from Duke, solar advocates, solar companies, renewable energy groups, and environmentalists, the pending settlement represents a novel approach to rooftop solar in the United States. It would be the fi rst, Huber says, to link up solar with dispatchable resources using rate-design concepts including minimum bill, grid access fees, and TOU, to name a few. “It’s fi nally breaking down the silos where before you would treat rooftop solar completely separate from your energy effi ciency DSM programs,” he explains. “Here, we’re really tying the two together and making sure we get synergies out of both.”

In yet another major initiative, Duke has received approval of its Clean Energy Connection. The project would add 10 75-MW solar power plants in Florida through 2024, earmarking 27.7 percent of the residential capacity for low-income customers. Those residents would receive a bill credit that keeps their subscription rate charge from raising their total bill in any given year. The low-income component alone makes it one of the biggest community solar projects in the country, Huber notes.

As Duke selects these and other projects to support its decarbonization mission, it is confronted with whether it must also choose between low-cost, utility-scale solar and programs that allow distributed clean energy to fl ourish—or if there is room for both. “It’s nuanced,” Huber concludes. “In general you want to have all of the above. The question becomes how do you allocate your resources to that ‘all of the above.’” The key, he explains, is diversifi cation. Data and experience, he continues, teaches us that rooftop solar comes at a signifi cant premium over large-scale solar. It’s simple economies of scale. However, Huber is quick to recognize that the distributed piece should still come into play, particularly when there are locational-use cases driving that demand. Even so, the bottom line is that “we should be allocating our resources smartly because this global warming fi ght is so big, it’s going to take an enormous amount of spending. So we need to invest those resources in the highest-producing investments” while still diversifying on some level.

What Duke won’t do in pursuit of cleaner energy, he says, is try to take options such as natural gas and nuclear power off the table, something die-hards who don’t get the big picture might want. “Some people might say no natural gas ever,” he off ers as an example. “Well, if this is really about carbon, then the question should not necessarily be about specifi c resources—it should be about what using or not using it does in terms of carbon emissions.” Having natural gas primarily in the role of fi rming and backing up capabilities, for example, would generate relatively low carbon emissions. The importance of nuclear, in terms of having a “clean energy backbone,” also cannot be overstated, he says. Even as today’s utilities unify on the importance of decarbonization, each is in a diff erent place and trying to match their goals in the most cost-eff ective manner possible—and Huber says that doesn’t necessarily mean choosing one technology over another. Rather, he suggests, it means “optimizing and investing smartly so that you can stretch the dollar as far as possible.” It’s a monumental task for any utility, and he lauds his own organization both for embracing the spirit of innovation and for focusing on the needs of the customer.

Holy Cross EnergyHoly Cross is a fraction of the size of Duke Energy; but it, too, is proving

to be a formidable force in the decarbonization movement. Like its larger cousin, the co-op saw itself making measurable strides—then upped the ante. On the cusp of reaching 40 percent clean energy in the late summer of 2018, Holy Cross Energy put 100 MW of wind capacity and 30 MW of solar capacity under contract through purchased-power agreements. As those projects hopefully start to deliver within the next year or two, Hannegan predicts they alone will push the company into the 70 percent range, well ahead of its 2030 deadline. To catapult it to the next threshold of 80-85 percent, Holy Cross is already working on additional options. One that drew a lot of attention is solar-plus-storage, which Hannegan notes is increasingly attractive as pricing comes down and battery performance goes up. Having solar and storage co-located and directly connected to the co-op‘s distribution system “gave us a lot of great opportunities to fi t more renewables into our load shape,” he says, adding that those agreements are in the process of being negotiated and signed, with delivery expected in 2023-24.

As utilities start to approach those bigger targets—70, 80, 85 percent clean energy—Hannegan says the conversation will begin to turn to what to do when the grid is overwhelmed with wind and solar power. For its part, Holy Cross has introduced a new program called GreenUp, which is basically the reverse of a peak-time rebate. Instead of paying consumers to abstain from use during peak times, the company pays them to consume during periods when there is far more renewable in the system than can be used. They encourage customers to fi ll up their batteries, run their hot water heater, etc., during these windows and give

Image courtesy of Duke Energy

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them a cut rate to sweeten the deal. “It’s basically free energy, at some level, that we would have to curtail otherwise” explains Hannegan, who says Holy Cross wants its consumers to benefi t from those situations. Leveraging innovative programs like these, in tandem with more traditional incentive programs like TOU options, helped the co-op assist its customers in better managing their energy spending.

What could set Holy Cross apart from the rest of the crowd, meanwhile, is its laser focus on grid modernization. Insiders are particularly excited about the prospect of sending control signals or price signals to consuming devices, directing them to ramp up or ramp down as conditions dictate. Conventional price signals no longer apply when you’re talking about wind and solar, which have no associated fuel costs, Hannegan explains, which in turn spawns a need for creative customer solutions.

He believes dynamic pricing with the consumer will be instrumental, although a great deal relies on consuming devices having the capability to respond to said price signals. How he envisions that playing out is through third-party aggregators—an AESP member, perhaps—providing service behind the scenes. Some customers, however, will want to manage it on their own through smartphone apps; and Hannegan says utilities have to fi gure out ways to seamlessly deliver that “set it and forget it” experience or risk losing customers. Holy Cross envisions one day developing an Amazon-like environment where consumers can visit the website, click on a menu of rate options and distributed energy resources (DERs), accept or reject fi nancing, agree to terms, and with a few clicks have a new deal in place. “Because that’s what, in an increasingly stressful and time-consuming world, what our people want,” Hannegan states. “And we better give our customers what they want before somebody else does.” Whether consumers take it on themselves or if third-party aggregators get involved, dynamic pricing may help address questions that will arise after the successful migration to clean energy —one of which is how to use all of this new capacity as a substitute for transportation, buildings, and other segments of the economy that historically have relied on fossil fuels.

Holy Cross has jumped into transit electrifi cation through collaborations with the two transit authorities serving the bulk of its customer base. Both are upgrading to electric buses, and the co-op has agreed to cover all the costs of installing the infrastructure—provided that it’s located in places in the system where Holy Cross thinks it makes the most sense. The company is also working with the transit authorities on rate designs that can leverage the fact that the buses will be in the depot in the early morning, reaping the benefi ts of wind generation during the overnight hours. “So how do we pass that benefi t on through to those members to encourage them to electrify their bus fl eets and at the same time reduce their emissions in a way that helps our community?” Hannegan asks.

On the housing side, Holy Cross garnered a good deal of attention for its project with the local Habitat for Humanity chapter to install DER at four aff ordable housing units reserved for teachers at Basalt High School. The co-op donated the necessary equipment, which reduced the homes’ utility costs by a staggering 80 percent. “In exchange for that,” Hannegan remarks, “we’ve learned a ton about how to manage a high DER future on our distribution grid. That’s now guided the development of our next generation grid operating system that will allow us to call upon consumer-sided resources as part of our overall supply banks, and that includes demand-response.” He recalls a major outage near Basalt that left the entire area in the dark—with the exception of the four houses with DER. All four homeowners contacted him to say their lights stayed on for the duration of the outage.

Hannegan calls it their Plan B, or resiliency in the face of wildfi res, earthquakes, and other natural hazards. In his three years with Holy Cross, major wildfi res ravaged the area during two summers. After the fi rst of the two, the Lake Christine fi re, Hannegan says an understanding emerged that being resilient following catastrophic events requires a “consultation and cooperation” between the utility and the community and the members that it serves. Holy Cross is now working with the communities on projects such as microgrids that would allow it to operate grid fragments separately and distinct from one another during

Image from Holy Cross Energy website – Source: https://www.holycross.com/

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As of December, the Orlando Utilities Commission (OUC) has a new Electric Integrated Resource Plan (EIRP) in place that maps out strategies for meeting important climate targets in the coming years. The municipal utility is committed to cutting carbon emissions in half by 2030, to achieve 75 percent carbon reduction by 2040, and net-zero status by 2050.

The EIRP “black box,” as Chief Customer O� cer Linda Ferrone bills it, also includes reliability goals; a number of investment objectives for solar, energy storage, and electric vehicles; and even parameters for price competitiveness.

With two more IRPs expected before 2030 ever dawns, Ferrone expects OUC’s outlook and planning will continue to evolve. What it means for the foreseeable future, however, is (1) the conversion of big coal units to natural gas and (2) a signifi cant shift toward solar, with the addition of approximately 1,500 MW and investments in energy storage. The utility plans to play up rooftop solar for homeowners, while its community solar farms o� er opportunities for environmentally conscious residential and commercial customers who cannot invest in rooftop because they don’t own their buildings or for other reasons.

As of 2019, the utility’s generation portfolio included a mix of 41 percent coal, 53 percent gas, and 3 percent solar, with the rest falling into the catchall “other” category. By 2030, Ferrone says coal will be a mere memory; and the mix will be more like 42 percent solar, 47 percent gas, and 9 percent storage. Notably, solar will be a signifi cant ingredient

in OUC’s generation recipe—but it won’t be the only ingredient. Tapping the power of the sun may seem a natural fi t for a utility in Florida, but those who know are keenly aware that full dependence on this renewable is actually unrealistic. “Florida is also a ‘partly cloudy’ state—it’s not just the Sunshine State,” says Ferrone. She notes that along with sustainability and a� ordability, the utility is committed to reliability and resiliency. “The last thing in the world we want is to be reliant on 100 percent solar in our service territory and a hurricane rolls through and we have a cloudy event for four days—that would be a problem,” she added.

Another sticking point, is that land available for solar panels will eventually be depleted. “I’m a big proponent of solar energy, but not at the expense of every bit of land that we have,” she says. “It’s a balance, like everything else. We haven’t quite fi gured out that balance, and so there’s more work to be done.”

That being said, OUC recognizes the need to invest elsewhere, too, which Ferrone says will help the utility maintain the diversity in fuel sources that it and its customers so value. It continues to work with landfi ll gas and nuclear but is also eyeing more hydrogen storage and wind projects.

Orlando Utilities Commission’s Clean Energy Plan Will Rely Heavily on Solar, New Renewable Technologies

OUC’s Ksionek Solar Farm at Stanton Energy Center looking west to Downtown Orlando. Courtesy of OUC.

an event. “As you think about your system and your design for what you think this clean energy aff ordable, safe future is going to be, you now have to add on resilience as a ‘design parameter,’” he concludes.

Another question, in the context of a clean energy future, is how to continue running a utility in a way that is aff ordable for consumers but that generates enough revenue to keep the business solvent. Holy Cross’ track record is pretty good, so far. The utility has gone the last three years with no increase in overall electric rates, and it doesn’t anticipate a higher rate going into 2021 either. Hannegan says new savings have been generated with each and every project the company has brought online, none of them costing more than the avoided expense of the current power supply. He hammers out the math. “The standard calculus is your rate of cost increase minus your rate of load growth equals your rate of change in your rate structure. So if you’ve got no load growth [typical for the naturally mountainous area that Holy Cross services] and you’ve got positive cost increases, that means you’re guaranteed rate increases over time unless you fi nd cost savings somewhere else. We’ve done that with our power supply, and I’m proud of that.” Although he can’t promise constant rates forever, Hannegan says the co-op is onto something good: making its product cleaner and more aff ordable, all at the same time.

“Our vision is to lead the responsible transition to a clean energy future. And when you’re leading, you’ve got to be out in front,” he said. “When we feel confi dent that we can do it with safe, aff ordable, and reliable energy service like we always have, we should push the throttle forward and make that transition happen sooner rather than later.”

The “New” UtilityBoth Huber and Hannegan feel a certain pride and excitement in their

respective new roles at Duke and Holy Cross. Both believe that today’s environment and utility culture is one where they can make a diff erence on climate change. “Now’s a time when utilities are taking a great leadership role and you can make a big impact,” says Huber. “People should be proud to be working for utilities at this time and in the future, working through this transition.”

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INTRODUCTION

In the Pacifi c Northwest, 2020 was a tumultuous year. In March, the fi rst COVID-19 cases were diagnosed in a suburb of Seattle and the region quickly shut down, resulting in massive economic upheaval. In June, in response to the death of George Floyd in Minneapolis, Seattle and Portland were epicenters for the Black Lives Matter movement, with nightly protests that continued on for months. In August and September, massive wildfi res erupted across Oregon and Washington, choking the region in dangerous air quality. All of which occurred under the shadow of the highly divisive election season.

Throughout these challenges, northwest area utilities and energy effi ciency organizations continue to advance energy effi ciency and clean energy solutions for their customers. To explore what the future of energy effi ciency looks like in the Pacifi c Northwest, we interviewed six experts from gas and electric utilities, and energy effi ciency organizations in Washington and Oregon about their experiences over the last year and where they see future challenges.

E N E R GY EFFICIENCY IN THE GREAT UPPER LEFTby Jeremy Kraft and Jane Peters

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Unique Nature of the Pacific Northwest

First, it is important to understand the drivers of energy effi ciency in the Pacifi c Northwest. A unique aspect of the region is the role of the Bonneville Power Administration (BPA) in energy effi ciency delivery. A federal organization, BPA is the marketing agent for the electricity generated by the federally owned dams in the Pacifi c Northwest. It generates 28% of the electricity for the region, all of which is nearly carbon-free due to its source, hydropower. In addition to selling energy, BPA considers energy effi ciency as a resource and it funds signifi cant energy effi ciency eff orts in the region. It provides resources for its customers (i.e., local utilities) to implement energy effi ciency projects in their jurisdictions and has set procedures for reporting energy savings as part of its planning and forecasting.

Second, the major population centers in the Pacifi c Northwest, namely the Puget Sound area and the Portland metro area, have experienced signifi cant population growth in the last 10 years. In both regions, there is signifi cant new construction, and housing prices continue to increase. And while still early, it appears that the economic fallout from COVID-19 has done little to dampen this growth. As a result of this growth, there are both signifi cant opportunities to impact new construction (specifi cally in the multi-family sector); and also ensure that energy effi ciency and clean energy are equitably distributed and that disadvantaged communities are not left behind as a result of the growth.

Finally, as with elsewhere in the country, customer expectations are changing. In the age of video-on-demand, Amazon Prime, and ride shares, customers increasingly expect their services to be personalized and delivered to them when and how they want them. As technology companies such as Nest and Tesla seek to address the energy needs of customers, the expectations of utilities off ering clean energy solutions increases as well.

Energy Efficiency DriversThese drivers, as well as factors impacting organizations

across the country (e.g., changing lighting standards, low natural gas prices, increased focus on electrifi cation) had already created an evolving environment for energy effi ciency program delivery in the Pacifi c Northwest. However, the impacts of COVID-19 and the related economic distress are the main consideration at the moment, and for many commercial and industrial customers, reducing energy costs may not be a current priority. As stated by one of our interviewees, “for a lot of people, signing up for utility program might not be top of mind right now.” Despite evidence that energy effi ciency is a good investment and ultimately will save money, customers are focused on immediate needs such as the health and safety of their employees or evolving their business to survive pandemic shutdowns and work-from-home policies. There are also concerns regarding the infl uence of the pandemic on commercial real estate. It remains to be seen how the large shift to working-from-home will impact the real estate market and the downstream impact that this might have on conservation potential. While it may increase potential in the residential sector, residential energy savings are

generally less cost-eff ective (due to lost economics of scale), which will have a cascading impact on portfolio design.

Regulatory DriversAs a result, some utilities are concerned about potential

impacts on future conservation goals. In Washington, utilities are just beginning to understand how the response to COVID-19 will impact their ability to respond to both I-937 and the recent Clean Energy Transformation Act (CETA). I-937 is the governing legislation that directs utilities to acquire all cost-eff ective energy effi ciency and relies on the Regional Technical Forum for deemed savings values. However, some smaller utilities fi nd that their local markets have diff erent conditions than larger urban areas. For example, with residential lighting, stakeholders allow utilities to conduct quarterly shelf stocking surveys and run programs for residential lighting if these studies identify diff erences from NEEA regional studies. It remains to be seen how the response to COVID-19 impacts these diff erences over time, if at all. One utility reported that “it's apparent that it might be challenging to hit [an energy conservation] target either due to our own staff being unable to engage customers or our customers not having the capital to make investments or the staff to initiate projects.” To date, there have not been formal decisions regarding how regulatory frameworks could shift as a response to COVID-19 but some adjustments might be possible e.g. an increase in the amount of allowed roll-over savings from year-to-year.

Similarly, CETA mandates that all Washington electric utilities remove coal generation from their generation mix by 2025 and be GHG neutral by 2030. Already an aggressive goal, the impacts from COVID-19 may make achieving this transition even more challenging. That said, CETA also includes signifi cant guidelines for the support that utilities must off er to low-income communities to ensure that all households benefi t from a clean energy transition. This goal aligns well with recent moves to support households and businesses heavily impacted economically by COVID-19 as well as renewed investment in diversity, equity, and inclusion initiatives (DEI) in response to social justice movements all across the country.

In Oregon, the recent Governor Executive Order 20-04 sets up a “Cap and Reduce” eff ort that directs state agencies to reduce GHG by at least 45 percent below 1990 emissions by 2035 and at least 80 percent below 1990 emissions by 2050. This order is especially aff ecting policy by the Oregon Department of Energy (ODOE), the Oregon Public Utility Commission (OPUC), and the Oregon Department of Environmental Quality (DEQ). The order is leading to a variety of new standards and code updates as well as supporting increased commitment to energy effi ciency and electrifi cation of transportation. The Clean Fuels Program, another statewide eff ort started in 2016, also supports transportation electrifi cation and is designed to decrease the amount of GHG created during the life cycle of fuels used in Oregon by 25 percent by 2035 compared to 2015 levels, credits from this program apply to clean transportation options. While in the short term, COVID-19 presents risks to these goals, they may still generally be attainable in a post COVID-19 economy.

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The Only Constant is ChangeWhile potentially impacting resource acquisition and other energy

effi ciency eff orts, the public health response to COVID-19 has also created some opportunities for utilities to engage their customers in new ways that may provide benefi ts in a post-pandemic environment. The pandemic has highlighted the value of customer-driven programs that follow a “pay-for-performance” model that are less reliant on utility interventions beyond fi nancial payments and consumption modeling. Per one interviewee, as these programs don’t require on-site support or in-person verifi cation, their utility has been able to continue focus on these eff orts through-out the pandemic (though it has raised verifi cation challenges due to drastically altered occupancy in commercial buildings). Some utilities have off ered “bonus” incentives to spur participation and to support hard-hit sectors and geographic regions, with one utility off ering a 25 percent increase in incentives for its residential customers.

In addition to program design, the pandemic has created an opportunity to test and validate the usefulness of virtual inspections. As the use of video conferencing software becomes normalized, the utilities, their trade partners, and customers are seeing the benefi ts that the fl exibility of virtual inspections provides. Utilities are able to conduct the inspections on customers’ schedule with less upfront scheduling work and travel time while also collecting data that’s accurate and useable for verifi cation purposes. In addition, the pandemic has highlighted the value of including evaluation functions in the program delivery process – as a function of implementation, not just an after-the-fact review function. Given the rapidly changing environment, on-going evaluation allows utilities to, as one manager reported, “make sure that we have fl exibility and the right tools in the toolbox for what’s being implemented.”

Impacts of COVID-19 on Program Implementation and Evaluation

But in general, energy effi ciency implementation and evaluation research has continued as scheduled; it just looks diff erent. In Oregon construction is considered an “essential industry” and has not been closed down. Energy Trust continues to off er programs, not wanting to stop programs as this aff ect program partners. They rebid the commercial program implementation during COVID-19, and that contract redesigned the new construction commercial program in response to the new buildings code. A statewide eff ort to ensure responsiveness of programs to customers resulted in several programs being altered, with higher incentives and broader eligibility requirements.

Evaluation Research As for evaluation research, the Energy Trust of Oregon has seen

no reduction in program evaluation activities during the pandemic. Similarly, NEEA continues to evaluate their market transformation eff orts through evaluation research but has made changes to their approach to address COVID-19 safety issues. These changes include shifting focus groups to online and shifting in-person on-sites to virtual site visits. This latter change has mainly aff ected a code study that was about to launch in the spring, delaying research as new tools and solutions were developed for the study.

DEI metrics enter Evaluation and Program Design

Similarly, the protests sparked by the death of George Floyd have accelerated the drive to support underserved communities (generally communities of color) through energy effi ciency eff orts and organizations in the Pacifi c Northwest are taking a variety of tactics. One utility in Washington includes DEI metrics as part of evaluation and program design, allowing their team to track their progress on DEI goals via embedded metrics in implementation. This ensures that DEI goals are at the forefront of the program design and not an after-thought that then becomes diffi cult to achieve. Other utilities have established leaders responsible for DEI. For example, the Energy Trust has a DEI manager and in 2020, established a DEI Advisory Group comparable to their conservation and evaluation advisory groups with community, technical and regulatory members.

ConclusionIt should come as no surprise to any reader that demand-side

management in 2020 did not look like any other year. COVID-19 and the current social and political climate have required program planners, implementors, and evaluators to be agile, empathetic, and innovative. While long-term challenges (including dwindling savings from lighting, regulatory complications associated with fuel-switching, and quantifying locational and temporal GHG reductions) remain, they are now complicated by renewed focus on workforce development and supporting underserved communities. However, the energy effi ciency organizations in the Pacifi c Northwest have largely been up to these challenges. The only question – what new challenges will we face in 2021?

About the authorsJane S. Peters is a Senior Vice President at Opinion Dynamics with 38 years of experience in measurement and evaluation, market research, strategic planning, organizational analysis, and process re-engineering for clean energy programs. As a longtime resident of the Pacifi c Northwest, she talks with program administrators to hear how COVID-19 affected regional EM&V and program activities in 2020.

Jeremy Kraft is a Director at TRC Companies and has 14 years of experience in DSM program design, research, and evaluation. A relative newcomer to the upper-left corner of the U.S. (eight years and counting), he’s always excited to be part of a community that passionately pursues clean energy solutions in the face of signifi cant challenges.

This article is contributed by the AESP EM&V Topic Committee

Unique Nature of the Pacific Northwest

First, it is important to understand the drivers of energy effi ciency in the Pacifi c Northwest. A unique aspect of the region is the role of the Bonneville Power Administration (BPA) in energy effi ciency delivery. A federal organization, BPA is the marketing agent for the electricity generated by the federally owned dams in the Pacifi c Northwest. It generates 28% of the electricity for the region, all of which is nearly carbon-free due to its source, hydropower. In addition to selling energy, BPA considers energy effi ciency as a resource and it funds signifi cant energy effi ciency eff orts in the region. It provides resources for its customers (i.e., local utilities) to implement energy effi ciency projects in their jurisdictions and has set procedures for reporting energy savings as part of its planning and forecasting.

Second, the major population centers in the Pacifi c Northwest, namely the Puget Sound area and the Portland metro area, have experienced signifi cant population growth in the last 10 years. In both regions, there is signifi cant new construction, and housing prices continue to increase. And while still early, it appears that the economic fallout from COVID-19 has done little to dampen this growth. As a result of this growth, there are both signifi cant opportunities to impact new construction (specifi cally in the multi-family sector); and also ensure that energy effi ciency and clean energy are equitably distributed and that disadvantaged communities are not left behind as a result of the growth.

Finally, as with elsewhere in the country, customer expectations are changing. In the age of video-on-demand, Amazon Prime, and ride shares, customers increasingly expect their services to be personalized and delivered to them when and how they want them. As technology companies such as Nest and Tesla seek to address the energy needs of customers, the expectations of utilities off ering clean energy solutions increases as well.

Energy Efficiency DriversThese drivers, as well as factors impacting organizations

across the country (e.g., changing lighting standards, low natural gas prices, increased focus on electrifi cation) had already created an evolving environment for energy effi ciency program delivery in the Pacifi c Northwest. However, the impacts of COVID-19 and the related economic distress are the main consideration at the moment, and for many commercial and industrial customers, reducing energy costs may not be a current priority. As stated by one of our interviewees, “for a lot of people, signing up for utility program might not be top of mind right now.” Despite evidence that energy effi ciency is a good investment and ultimately will save money, customers are focused on immediate needs such as the health and safety of their employees or evolving their business to survive pandemic shutdowns and work-from-home policies. There are also concerns regarding the infl uence of the pandemic on commercial real estate. It remains to be seen how the large shift to working-from-home will impact the real estate market and the downstream impact that this might have on conservation potential. While it may increase potential in the residential sector, residential energy savings are

generally less cost-eff ective (due to lost economics of scale), which will have a cascading impact on portfolio design.

Regulatory DriversAs a result, some utilities are concerned about potential

impacts on future conservation goals. In Washington, utilities are just beginning to understand how the response to COVID-19 will impact their ability to respond to both I-937 and the recent Clean Energy Transformation Act (CETA). I-937 is the governing legislation that directs utilities to acquire all cost-eff ective energy effi ciency and relies on the Regional Technical Forum for deemed savings values. However, some smaller utilities fi nd that their local markets have diff erent conditions than larger urban areas. For example, with residential lighting, stakeholders allow utilities to conduct quarterly shelf stocking surveys and run programs for residential lighting if these studies identify diff erences from NEEA regional studies. It remains to be seen how the response to COVID-19 impacts these diff erences over time, if at all. One utility reported that “it's apparent that it might be challenging to hit [an energy conservation] target either due to our own staff being unable to engage customers or our customers not having the capital to make investments or the staff to initiate projects.” To date, there have not been formal decisions regarding how regulatory frameworks could shift as a response to COVID-19 but some adjustments might be possible e.g. an increase in the amount of allowed roll-over savings from year-to-year.

Similarly, CETA mandates that all Washington electric utilities remove coal generation from their generation mix by 2025 and be GHG neutral by 2030. Already an aggressive goal, the impacts from COVID-19 may make achieving this transition even more challenging. That said, CETA also includes signifi cant guidelines for the support that utilities must off er to low-income communities to ensure that all households benefi t from a clean energy transition. This goal aligns well with recent moves to support households and businesses heavily impacted economically by COVID-19 as well as renewed investment in diversity, equity, and inclusion initiatives (DEI) in response to social justice movements all across the country.

In Oregon, the recent Governor Executive Order 20-04 sets up a “Cap and Reduce” eff ort that directs state agencies to reduce GHG by at least 45 percent below 1990 emissions by 2035 and at least 80 percent below 1990 emissions by 2050. This order is especially aff ecting policy by the Oregon Department of Energy (ODOE), the Oregon Public Utility Commission (OPUC), and the Oregon Department of Environmental Quality (DEQ). The order is leading to a variety of new standards and code updates as well as supporting increased commitment to energy effi ciency and electrifi cation of transportation. The Clean Fuels Program, another statewide eff ort started in 2016, also supports transportation electrifi cation and is designed to decrease the amount of GHG created during the life cycle of fuels used in Oregon by 25 percent by 2035 compared to 2015 levels, credits from this program apply to clean transportation options. While in the short term, COVID-19 presents risks to these goals, they may still generally be attainable in a post COVID-19 economy.

www.aesp.org | first quarter 2021 17

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Energy effi ciency is a primary consideration for owners of both commercial and residential properties. Not only does an energy-effi cient building reduce energy consumption and, subsequently, carbon emissions, but it can lower the cost of operation and make the building eligible for government incentives and tax breaks.

In order to ensure that modern buildings are energy-effi cient, it is important to build and renovate with innovative materials that were designed with energy effi ciency in mind. To this eff ect, there are a number of options that can help contractors meet their energy effi ciency goals.

Insulated Concrete FormsOne of the best ways to ensure that a building is energy effi cient is

to create a high-quality building envelope. The building envelope, or building enclosure, refers to those elements of a building that keep the interior, conditioned environment separated from the exterior, unconditioned environment. A quality building envelope prevents the unwanted transfer of air, moisture, heat, light, and sound into and out of the building.

The building envelope consists of features such as the foundation, roofi ng, walls, windows, and insulation. However, there is arguably no more important aspect of the building envelope than the framing.

The most common framing material for most buildings has traditionally been some form of oriented strand board, in which wood strands are tightly compacted with adhesives to form a type of engineered particleboard. While the use of oriented strand boards proliferated in the 1970s thanks to its convenience, reasonable price, and generally strong load-bearing properties, it is not the best choice when constructing with energy effi ciency in mind.

Most oriented strand boards are pre-fabricated into framing panels at the factory and transferred to the building site, where a combination of manual labor and heavy machinery gets the panels to fi t together like pieces of a puzzle. While CAD technology takes most of the error out of this process, there will always be some minor imperfections that leave small cracks and crevices through which air can leak through the building envelope.

In addition, wood framing is susceptible to fi re, will expand and contract as it absorbs and releases moisture, and has a low thermal mass. All of these concerns will either directly or indirectly infl uence the oriented strand board’s ability to provide an energy-effi cient frame.

As a solution to these concerns, many modern construction sites are increasingly turning to insulated concrete forms (ICF). ICF may appear like any typical concrete framing solution, but it takes many of the energy effi ciency advantages of concrete and expands on them. Reinforced with steel rebar for strength and durability, it gains its insulation from a double layer of 100 percent recycled post-industrial polypropylene. This provides an R-value in excess of 23.5, which is greater than the industry standard required for a net-zero energy-effi cient build.

Insulated concrete forms can be fabricated on-site into convenient tilt-up panels. Tilt-up wall construction involves pouring concrete framing horizontally at the job site. After the concrete has cured, the panel is then lifted vertically and set in place. Not only does this create an airtight panel through which energy cannot transfer, but fewer resources are required in storing, hauling, and erecting pre-formed panels. Concrete also features one of the highest thermal masses among construction materials, meaning that signifi cant energy is required to change its temperature. It does an outstanding job of absorbing and slowly radiating heat throughout the day, ensuring that the interior stays comfortable during the cool months and preventing the rapid transfer of heat into a building’s interior at the height of summer. This can help the HVAC system from ever having to kick into high gear to keep the building at a livable temperature.

NEW & INNOVATIVE MATERIALS That Improve a Building’s Energy E� ciencyby Matt Lee

Association of Energy Services Professionals18

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Composite Roofing ShinglesAnother important aspect of the building envelope, there are

numerous reasons to keep the roof in good condition when creating an energy-effi cient building. The roof will be a building’s primary means of protection against nature’s elements, often feeling the eff ects of UV rays, high winds, and inclement weather more acutely than any other location on the building.

Some of the most common roofi ng materials on the market off er varying levels of protection from these elements. Asphalt shingles do a solid job while they are new, but they are known to raise and blister in the face of heavy sun and wind exposure. They also lose most of their eff ectiveness after about 20 years. Wood shakes can last longer than asphalt shingles, but they need to be treated with regularity in order to prevent cracking and the threat of fi re. Ceramic tiles have a higher thermal mass than both asphalt and wood, meaning that they will do a much better job of preventing heat transfer into the building, but they can absorb water that can cause the underlayment to become compromised. They are also heavy and can be diffi cult to fi x when damaged.

If and when any of the aforementioned roofi ng issues occur, the building’s energy effi ciency will be compromised as air and moisture will migrate through the aff ected areas. As such, impact-resistant shingles composed of a mixture of fi berglass, asphalt, and other sustainable compounds are increasingly being used as a roofi ng alternative. Some of the key points that support composite roofi ng as an energy-effi cient solution includes:

■ A Class 4 impact rating, certifying the shingles to withstand winds of up to 110 MPH and preventing unwanted air transfer into the building

■ Lightweight fabrication poses less structural threat to a home than heavier materials such as clay and concrete

■ Moisture resistant synthetic compounds to inhibit the buildup of mold that undermines the integrity of some traditional roofi ng products, such as wood shakes

■ Class A fi re rating, the highest in the building industry.

Polished Concrete FlooringWhen choosing an energy-effi cient fl oor, it is important to make

a selection that does not require electricity to clean. To this eff ect, polished concrete is becoming increasingly popular in hotels and some residential properties. Tightly sealed to prevent staining and capable of being cleaned with a push of the broom, polished concrete checks many of the boxes that contractors look for when designing an energy-effi cient building.

However, some argue that any energy savings rendered by hard fl ooring options are off set by increased heat consumption, as hard fl oors typically get cold in the mornings and during the cooler months. To alleviate this concern, consider radiant fl oor heating in conjunction with a fl ooring upgrade. This can be achieved through either a hydronic or electric system. For the hydronic system, a series of sub-fl oor pipes will be laid down prior to the actual fl oor installation. These pipes will draw water from the hot water heater and circulate it beneath the fl oor. For the electric system, a heated fl oor mat is used in place of pipes. This mat is connected to the home’s electric panel and can be controlled with a thermostat.

Once installed, this innovative fl oor heating system slowly disperses heat throughout the day in a stove-like manner. In addition to keeping the fl oors cozy, cold pockets in the building are likely to be less pronounced with the radiating heat rising up in a consistent manner. Most buildings that use this system for heating their fl oors will see a 15 to 30 percent reduction in their heating costs, depending on the type of heat source the building uses. Some residents have even reported that the toasty fl oors make it comfortable to keep the interior temperature up to 5 degrees cooler, which can expand on these savings. While an initial cost to install of between $10 to $15 per square foot for installation may seem steep, it can be a vital component in curbing energy use in a home and may eventually recoup most or all of its installation cost over time.

ConclusionThe importance of energy effi ciency in building construction is only

going to increase in 2021 and beyond. In addition to protecting the environment, energy-effi cient buildings can help owners save money through lower utility bills and tax breaks. As such, when building and renovating, innovative materials such as insulated concrete forms, composite roofi ng shingles, and polished concrete fl ooring can all help reduce a building’s dependence on nonrenewable energy sources.

About the authorMatt Lee is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy effi ciency, and increase property value.

Energy effi ciency is a primary consideration for owners of both commercial and residential properties. Not only does an energy-effi cient building reduce energy consumption and, subsequently, carbon emissions, but it can lower the cost of operation and make the building eligible for government incentives and tax breaks.

In order to ensure that modern buildings are energy-effi cient, it is important to build and renovate with innovative materials that were designed with energy effi ciency in mind. To this eff ect, there are a number of options that can help contractors meet their energy effi ciency goals.

Insulated Concrete FormsOne of the best ways to ensure that a building is energy effi cient is

to create a high-quality building envelope. The building envelope, or building enclosure, refers to those elements of a building that keep the interior, conditioned environment separated from the exterior, unconditioned environment. A quality building envelope prevents the unwanted transfer of air, moisture, heat, light, and sound into and out of the building.

The building envelope consists of features such as the foundation, roofi ng, walls, windows, and insulation. However, there is arguably no more important aspect of the building envelope than the framing.

The most common framing material for most buildings has traditionally been some form of oriented strand board, in which wood strands are tightly compacted with adhesives to form a type of engineered particleboard. While the use of oriented strand boards proliferated in the 1970s thanks to its convenience, reasonable price, and generally strong load-bearing properties, it is not the best choice when constructing with energy effi ciency in mind.

Most oriented strand boards are pre-fabricated into framing panels at the factory and transferred to the building site, where a combination of manual labor and heavy machinery gets the panels to fi t together like pieces of a puzzle. While CAD technology takes most of the error out of this process, there will always be some minor imperfections that leave small cracks and crevices through which air can leak through the building envelope.

In addition, wood framing is susceptible to fi re, will expand and contract as it absorbs and releases moisture, and has a low thermal mass. All of these concerns will either directly or indirectly infl uence the oriented strand board’s ability to provide an energy-effi cient frame.

As a solution to these concerns, many modern construction sites are increasingly turning to insulated concrete forms (ICF). ICF may appear like any typical concrete framing solution, but it takes many of the energy effi ciency advantages of concrete and expands on them. Reinforced with steel rebar for strength and durability, it gains its insulation from a double layer of 100 percent recycled post-industrial polypropylene. This provides an R-value in excess of 23.5, which is greater than the industry standard required for a net-zero energy-effi cient build.

Insulated concrete forms can be fabricated on-site into convenient tilt-up panels. Tilt-up wall construction involves pouring concrete framing horizontally at the job site. After the concrete has cured, the panel is then lifted vertically and set in place. Not only does this create an airtight panel through which energy cannot transfer, but fewer resources are required in storing, hauling, and erecting pre-formed panels. Concrete also features one of the highest thermal masses among construction materials, meaning that signifi cant energy is required to change its temperature. It does an outstanding job of absorbing and slowly radiating heat throughout the day, ensuring that the interior stays comfortable during the cool months and preventing the rapid transfer of heat into a building’s interior at the height of summer. This can help the HVAC system from ever having to kick into high gear to keep the building at a livable temperature.

NEW & INNOVATIVE MATERIALS That Improve a Building’s Energy E� ciencyby Matt Lee

www.aesp.org | first quarter 2021 19

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