National Demand Response Action Plan David Kathan Office of Energy Policy and Innovation Federal Energy Regulatory Commission APPA National Conference.

National Demand Response National Demand Response Action PlanAction Plan

David KathanDavid Kathan

Office of Energy Policy and InnovationOffice of Energy Policy and InnovationFederal Energy Regulatory CommissionFederal Energy Regulatory Commission

APPA National Conference  APPA National Conference  June 16, 2009June 16, 2009

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Statutory RequirementsStatutory Requirements

Section 529 of Energy Independence & Security Act of 2007 Section 529 of Energy Independence & Security Act of 2007 creates a new Section 571 of the National Energy creates a new Section 571 of the National Energy Conservation Policy Act that requires FERC to:Conservation Policy Act that requires FERC to:

Conduct a Conduct a National Assessment of Demand ResponseNational Assessment of Demand Response• Due by June 19, 2009Due by June 19, 2009

Develop a Develop a National Action Plan on Demand ResponseNational Action Plan on Demand Response• Due by June 17, 2010Due by June 17, 2010

With DOE, submit National Action Plan With DOE, submit National Action Plan Implementation Implementation ProposalProposal to Congress to Congress• Due by December 17, 2010Due by December 17, 2010

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National Assessment of Demand ResponseNational Assessment of Demand Response

Subsection 571(a) of the National Energy Subsection 571(a) of the National Energy Conservation Policy Act requires FERC to:Conservation Policy Act requires FERC to:

Estimate nationwide DR potential, including data on State-by-State• In 5 and 10 year horizons

Estimate how much of this potential can be achieved by adopting specific policy recommendations

Identify barriers to DR and recommend policies to overcome these barriers

Status:• Commission staff estimated potential by using a consulting

team led by the Brattle Group• Final report will be published within the next couple weeks

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Demand Response National Action Plan Demand Response National Action Plan

Subsections 571(b) and 571(c) of the National Subsections 571(b) and 571(c) of the National Energy Conservation Policy Act require FERC to:Energy Conservation Policy Act require FERC to:

Develop a Develop a National Action Plan on Demand National Action Plan on Demand ResponseResponse• Solicit input and participation from broad range of Solicit input and participation from broad range of

stakeholdersstakeholders Including industry, state utility commissioners, and non-Including industry, state utility commissioners, and non-

governmental groups governmental groups

• Identify requirements for technical assistance to statesIdentify requirements for technical assistance to states• Identify requirements for a national communications Identify requirements for a national communications

programprogram• Identify analytical tools and other support material Identify analytical tools and other support material

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Demand Response National Action Plan Demand Response National Action Plan StatusStatus

Initial outreach completed in 2008Initial outreach completed in 2008

FERC Staff Discussion Draft of Possible Elements FERC Staff Discussion Draft of Possible Elements of a Demand Response National Action Plan of a Demand Response National Action Plan circulated for commentcirculated for comment

Broad outreach and feedback on elements of Broad outreach and feedback on elements of National Action Plan almost completedNational Action Plan almost completed

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Demand Response National Action Plan Demand Response National Action Plan Next StepsNext Steps

Release for public comment revised and Release for public comment revised and expanded Discussion Draftexpanded Discussion Draft

Conduct National Action Plan Technical Conduct National Action Plan Technical ConferenceConference

Publish for comment Draft National Action Plan by Publish for comment Draft National Action Plan by late 2009late 2009

Publish National Action Plan by June 2010Publish National Action Plan by June 2010

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Demand Response National Action Plan Demand Response National Action Plan Implementation ProposalImplementation Proposal

Post-June 2010 FERC will work with the Secretary Post-June 2010 FERC will work with the Secretary of Energy to develop a proposal to implement the of Energy to develop a proposal to implement the National Action PlanNational Action Plan

Contents of implementation proposal could Contents of implementation proposal could include:include:• Specific proposed assignments of responsibilitySpecific proposed assignments of responsibility

• Proposed budget amountsProposed budget amounts

• Agreements secured for participation from State and Agreements secured for participation from State and other participantsother participants

Implementation proposal due to Congress by Implementation proposal due to Congress by December 2010December 2010

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Demand Response National Action Plan Demand Response National Action Plan Possible ElementsPossible Elements

FERC staff is requesting input from stakeholders FERC staff is requesting input from stakeholders on the scope and possible elements of the on the scope and possible elements of the National Action Plan. National Action Plan.

ScopeScope::• What should be the strategic vision and goals of the What should be the strategic vision and goals of the

National Action Plan? National Action Plan? • Which elements should be included in the National Action Which elements should be included in the National Action

Plan to address the three objectives of the Act?Plan to address the three objectives of the Act?

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Demand Response National Action Plan Demand Response National Action Plan Possible ElementsPossible Elements

Assistance to States and Other Key Assistance to States and Other Key StakeholdersStakeholders• National Conference on Demand ResponseNational Conference on Demand Response• Regional WorkshopsRegional Workshops• Provision of Demand Response ExpertsProvision of Demand Response Experts• Technical PapersTechnical Papers• Demand Response Assistance ProgramDemand Response Assistance Program• Demand Response Grant ProgramDemand Response Grant Program

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Demand Response National Action Plan Demand Response National Action Plan Possible ElementsPossible Elements

National Communications ProgramNational Communications Program• National Demand Response Mass Media Marketing National Demand Response Mass Media Marketing

CampaignCampaign• Supplemental Communications Strategy for Creating Supplemental Communications Strategy for Creating

PartnershipsPartnerships• Integrated Energy Efficiency and Demand Response Integrated Energy Efficiency and Demand Response

StrategyStrategy

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Demand Response National Action Plan Demand Response National Action Plan Possible ElementsPossible Elements

Tools and Materials to Support Demand Tools and Materials to Support Demand ResponseResponse• Cost Effectiveness ToolsCost Effectiveness Tools• Measurement and Verification ToolsMeasurement and Verification Tools• Communication Standards for Consumer Demand Communication Standards for Consumer Demand

InformationInformation• Tools to Support the Provision of Ancillary ServicesTools to Support the Provision of Ancillary Services• Nationwide PHEV StandardsNationwide PHEV Standards• Lessons Learned from Demand Response Pilot ProjectsLessons Learned from Demand Response Pilot Projects• Model Regulatory Provisions and State LawsModel Regulatory Provisions and State Laws• Model Retail Tariffs Enabling Demand ResponseModel Retail Tariffs Enabling Demand Response• Cost Recovery Methods for Enabling TechnologyCost Recovery Methods for Enabling Technology• Web-based ClearinghouseWeb-based Clearinghouse• Issue Papers on Controversial TopicsIssue Papers on Controversial Topics

Questions?Questions?David KathanDavid Kathan

[email protected]

202-502-6404202-502-6404