Learning to Talk to Utilities: How California is Shaping Energy Efficiency Markets (Javier Mariscal) - ULI fall meeting - 102711

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SM

Learning to Talk to Utilities: How California is Shaping Energy Efficiency Markets

ULI Fall Conference

October 27, 2011

Javier Mariscal, AICP, LEED GA, CGBP

EDISON INTERNATIONAL®

SMDesign & Engineering Services

2

Part 1: Policy Drivers

California’s Energy

Efficiency Policies & Mandates

Part 2: Utilities’ Role

Shaping California’s

Energy Efficiency

Market

Part 3:Talking to Utilities

Partnering Opportunities for Achieving

Energy Efficiency Savings



World Oil Embargo Crisis (1973)

In October 1973, OPEC (plus Egypt and Syria) proclaimed an oil embargo "in response to

the U.S. decision to re-supply the Israeli military" during the Yom Kippur war; it lasted

until March 1974.

“Odd-even license plate” and “color flag” gas rationing programs were implemented

Prompted a national call for individuals and businesses to conserve energy

"Don't Be Fuelish"

3



Warren-Alquist Act (1974)

California Energy Commission (CEC) created to address

the energy challenges facing

the state.

Since 1978, CEC has been

developing and implementing

Energy Efficiency Building Code (Title

24, Part 6)

Saved more than $56 billion in

electricity and natural gas costs

since 1978. 4

1 2 3 4 5 6 7 8 91

01

11

21

31

41

51

61

71

81

92

02

12

22

32

42

52

62

72

82

93

03

13

23

33

43

53

63

73

83

94

04

14

24

34

4

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Per Capita Electricity Sales (not including self-generation)(kWh/person)

kW

h/p

ers

on

United StatesUnited States

California w/ standardsCalifornia w/out stds and programs

Art Rosenfeld



Electric Revenue “Decouple” (1982)

California becomes first state to “decouple” utility revenue profit from sales of electricity

Utilities are financially rewarded for providing energy efficiency incentive programs to customers

Under decoupling, the only way a utility can increase its profits is by reducing costs

5

Remove disincenti

ve for energy

efficiency



Global Warming Blockbuster (2005)

"Each one of us is a cause of global warming, but each one of us can

make choices to change that with the things we buy, the electricity we use...in America, the will to act is a

renewable resource.“

6



AB 32 Global Warming Act (2006)

7

California Air Resources Board (CARB) charged with reducing GHG emissions to 1990 levels by 2020

Climate Change Scoping Plan for reducing GHG adopted December 2008



CARB Scoping Plan (2008)

8

“Energy efficiency measures for both electricity and natural gas can reduce greenhouse gas emissions significantly”



CA Long Term EE Strategic Plan (2009)

9

Commercial ZNE by 2030

Residential ZNE by 2020

Big Bold Zero Net Energy Initiatives

Sets forth a Roadmap for Energy Efficiency in California through 2020

& Beyond



CA Green Building Standards (2010)

Makes mandatory basic “Green Building” practices not previously addressed in the building code before

Includes voluntary “Tiers” that may be adopted via local amendment

Comply with Title 24 Part 6 energy efficiency baseline

10



SB 97 – CEQA GHG Mitigation (2010)

1 kWh ≈ 1 CO2e lb

• Nexus linking energy efficiency as enforceable GHG mitigation measure

• Mitigate the potential effects of GHG emissions at the project level

11



12




Part 2: EE Innovation


Energy Efficiency

Market






13

California EE Innovation Cycle

Utilities Identify &

Test “Cutting Edge” EE &

DR Technology

Utilities Transform EE Market With

Incentives & Education

Utilities Propose Cost Effective EE Measures for

Code Adoption



• Identify new technologies for all customer segments to reduce energy consumption and demand

• Conduct literature search, laboratory evaluations and field studies to assess manufacturer’s claims

• Forward recommended technologies for adoption into EE incentive programs

14

Emerging Technologies Program



DR Technology




Code Adoption



15

Demand Response Program

• Integrated Demand Side Management

• Automated Demand Response

• Integration of DR into Building & Appliance Efficiency Standards (Codes & Standards)

• Demand Response Research Center Collaboration



DR Technology




Code Adoption



16

Advanced California Homes Program

• Whole House, Integrated Energy Design

• Residential New Construction

• Incentive “Bonus Kickers”

• Independent 3rd Party Inspections for Quality Control

• Optional ENERGY STAR participation receives EPA recognition through ENERGY STAR campaigns



DR Technology

Utilities Transform EE Market With Incentives & Education


Code Adoption



17

California ENERGY STAR New Homes

• 10% bonus incentive

Green Home Certification


Compact Home


Design Team Incentive

• 50% of cost of design charrette up to $5,000

30% better than 2008 Title

24

• $1,000 bonus SFR

• $200 /unit bonus MF



18

Savings By Design Program

• Whole Building, Integrated Energy Design

• Non-Residential New Construction, Additions, and Major Renovations

• Free Design Assistance and Incentives

– Owner Incentives ($500,000 maximum)

– Design Team Incentives ($50,000 maximum)



DR Technology

Utilities Transform EE Market With Incentives & Education


Code Adoption



19



Sustainable Communities Program

• Encourage the construction of Zero Net Energy buildings

• Expand traditional utility efforts beyond individual buildings to entire Low and Zero Net Energy communities

• Influence project early in the design & planning phase

• Integrate with other EE resource programs

20



DR Technology




Code Adoption



21



Codes & Standards Program

• Develop cost effective building and appliance energy efficiency measures

• Collaborate with California Energy Commission and industry stakeholders

• Provide training to enhance Statewide compliance with energy code

22



DR Technology




Code Adoption



Net

En

erg

y >

Z

ero

C&S Path to Zero Net - Residential

2008

Energy Code

(Jan 2010)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2013

Energy Code

(Jan 2014) 2016

Energy Code

(Jan 2017)

2019

Zero Net

Energy Code

(Jan 2020)

2013 Energy Code adoption expected March 2012

Two development cycles to reach Zero Net Energy

Develop 2016 Energy Code

Develop 2019 ZNE Code

23



24




Part 2: Utilities’ Role


Energy Efficiency

Market






25

Utility EE Incentives (July 2010)

Source: Institute for Electric Efficiency www.edisonfoundation.net/IEE

21

7



26

Utility Energy Efficiency Incentive Programs will

continue to evolve nationwide as more States adopt policies that allow utilities to “monetize”

energy efficiency



27

• [email protected]

Emerging Technology


Demand Response


Codes & Standards


Advanced California Homes


Savings By Design


Sustainable Communities

For additional program

information, please visit www.sce.co

m

Learning to Talk to Utilities: How California is Shaping Energy Efficiency Markets (Javier Mariscal) - ULI fall meeting - 102711

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