ETCC First Quarter-2012 Meeting CPUC Update. Ayat Osman, Ph.D. March 29, 2012 PG&E PEC, San Francisco

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1 ETCC First Quarter-2012 Meeting CPUC Update Ayat Osman, Ph.D. March 29, 2012 PG&E PEC, San Francisco 1

2 Proposed Decision Providing Guidance on Energy Efficiency Portfolio The Phase IV Scoping Memo signaled the intent to re-shape the IOUs programs away from shallow savings and more towards programs that achieve greater market transformation and long-term savings. ALJ Ruling on Program Guidance (Staff Proposal) DECISION PROVIDING GUIDANCE ON ENERGY EFFICIENCY PORTFOLIOS (March 2012) California Long-Term Energy Efficiency Plan on Research & Technology and Codes and Standards 2

3

4 Program Design: Clear Path- RDD&D Research & Development New Idea Enhance Demonstrations & Pilots Demands Deployment & Customer Acceptance 4

5 PD on Codes and Standards Program Reorientation towards an integrated, dynamic approach, to a establish a formal process that dynamically align planning activities across the IOU energy efficiency portfolio within the Codes and Standards program activities to: Maximizing code compliance with current and future C&S, Improving code readiness to all significant energy savings opportunities identified for a future code update cycle, and Targeting Reach Codes to achieve the ZNE goals for residential sector by 2020 and the commercial sector by 2030.

6 Expected Role of ETP The Emerging Technologies Program represents a major strategy that can help meet Zero Net Energy goals and identify opportunities for advancing future Codes and Standards. Emerging Technologies Program should be actively utilized to provide the next wave of advanced proven technologies that can be adopted into future IOU programs and C&S. 6

7 ETP PD (Order) The IOUs should include program components to demonstrate technologies that are candidates (as identified by the California Energy Commission and the IOU Codes and Standards program) for adoption in upcoming codes and standards. This program activity will require close coordination with the California Energy Commission and Commission Staff. 7

8 Balancing ETP Portfolio Balancing the selection of projects and program activities to meet the CPUC Energy Efficiency Savings Goals as well as long term Strategic Plan goals appropriate planning of resources and activities, selection of different mixes and distribution of technologies that are suitable for California s energy efficiency market. balance of the emerging technologies projects include fuel types, end use applications, market sector, (consideration of technical and market potential) 8

9 PD Guidance on ETP The Emerging Technologies Program should focus part of its efforts to accomplish reductions in plug loads and advancing integrated building design and operation solutions to achieve Zero Net Energy goals. 9

10 ETP PD on SP Goals (Order) We direct the IOUs to develop Residential and Commercial roadmaps that encompass existing building retrofit and new construction. The roadmaps should include detailed strategies, activities (such as assessments, pilots, demonstrations, etc.) and timelines that the IOUs propose to implement to expedite the assessment and deployment of advanced technologies. 10

11 RNC ZNE 2020 CNC ZNE 2030 Applying Integrated Approach in Residential and Commercial Sectors Strengthen connections between EE programs and C&S Market Transformation towards ZNE in Residential Sector Market Transformation towards ZNE and High Performance Buildings in Commercial Sector

12 COLLABORATION & COORDINATION 12

13 Additional Recommendations Program design needs to develop a clear pathway of transitioning new technologies from other external initiatives like PIER, universities and entrepreneurs. 13

14 Additional Recommendations (cont..) Expand the committee members for ETCC to include key research organizations and universities (e.g. LBNL & UC Davis) as well as the building and appliances standards setting bodies (CEC and DOE). 14

15 PD on ETP Coordination The Emerging Technologies Program can be used to bring market actors together in order to increase coordination and funding, leverage Research and Development opportunities, and support collaborative prospects. (Order) IOUs to establish a Collaborative membership category in the Emerging Technologies Coordinating Council. (Order) IOUs may further develop and expand the Technology Resource Incubator Outreach program trial solicitation. 15

16 C&S Planning & Coordination Sub-program WE& T + ME& O EE Resou rce Progra ms ETP & Pilots Codes & Standards Planning and Coordination Subprogram for the purpose of identifying high-priority advocacy objectives including those that incorporate reach codes to achieve ZNE and for maintaining an open communications forum, to include: Identification of statewide codes and standards objectives Map ZNE/IEPR/AB1109 and other policy goals onto code cycle time-lines Establish base code and state and local government reach code requirements to meet policy goals National building code priorities, including green building codes State and federal appliance standards priorities Industries to target for outreach and communications. Codes and Standards Collaborative, to explicitly advance C&S Strategic Plan goals.

17 MARKET INTELLIGENCE & CUSTOMER ACCEPTANCE WORKFORCE TRAINING MARKETING & OUTREACH 17

18 ETP: Market Behavioral & Customer Acceptance PG&E, SCE, SDG&E and SCG shall utilize enhanced market behavioral research to address customer and endusers acceptance and adoption of new technologies, in particular for technologies that are being considered for transfer into the energy efficiency portfolio. 18

19 C&S Program: ME&O Marketing, education and outreach to improve the understanding of the benefits associated with code compliance amongst customers and consumers and facilitate the adoption of future more stringent code. IOUs to partner with the CEC to support their outreach/education activities to improve compliance with codes and standards

20 C&S & ETP Program: WE&T IOUs shall coordinate with the Codes and Standards program and the California Energy Commission to identify critical early planning workforce training needs for advanced technologies. Enhanced workforce education and training to ensure the proper installation, commissioning and maintenance of code complaint measures and systems.

21 JOINT CEC & CPUC ACTION PLANS: (1) RESEARCH & TECHNOLOGY (2) CODES AND STANDARDS 21

22 Research & Technolgoy Goals Goal 1: Refocus utility and Energy Commission energy efficiency research and technology support to create demand pull and set the research agenda for both incremental and game-changing energy efficiency technology innovations Goal 1 Results: Ratepayer-funded R&D programs will explicitly support widely applicable whole-building improvement, lighting, and plug load solutions envisioned in this Plan and will be used to leverage other private and public funds for the deployment of new technologies. 22

23 Research & Technolgoy Goals cont.. Goal 2: Conduct targeted emerging technologies R&D to support the Big, Bold Energy Efficiency Strategies and integrated energy solutions goals. Goal Results: Profound improvement in equipment efficiency as well as new building materials and designs aimed at achieving more efficiency from new buildings than technically feasible today, and necessary to achieve Zero Net Energy and hot/dry climate HVAC outcomes. 23

24 R&T Action Plan Set the Research Agenda 1. Convene Collaborative Efforts between key market actors 2. Technology Roadmaps Roadmap vision RDD&D goals Milestones and actions Key Areas 1. Integrated Building Design (including Whole Building Integrated Solutions and New Building Materials and Designs) & Renewable and Storage 2. Market Intelligence Consumer needs and behavioral drivers Knowledge management systems 3. Plug Loads (including Controls, Building Management Systems and Diagnostics and Demand Response) 4. Hot/dry Climate HVAC

25 Paths-to-Market: Implement Targeted RDD&D - 25

26 C&S Chapter Goals Goal 1: Continually strengthen and expand building and appliance codes and standards as market experience reveals greater efficiency opportunities and completing economic benefits. Goal 1 Results: California s codes and standards will support this Plan s residential, commercial and HVAC sector goals. Goal 2: Dramatically improve code compliance and enforcement. Goal 2 Results: Energy savings from codes and standards will be fully realized. 26

27 C&S Chapter Strategies Goal 1: Code Enhancement and Expansion 1. Develop a phased and accelerated approach to more stringent codes and standards 2. Expand Titles 24 and 20 to address all significant energy end uses 3. Improve code research and analysis 4. Improve coordination of State energy codes and standards with other state and Federal regulations 5. Improve coordination of energy codes and standards with utility programs Goal 2: Compliance and Enforcement 1. Improve code compliance and enforcement 27

28 Development of the C&S Action Plan CPUC/CEC Approach Adopt a straw-man approach by first creating a draft action plan then solicit public feedback, rather than public workshop approach. ED working in parallel two tracks with T-20 Staff and T-24 Staff Mike Leaon (T-20), Martha Brooks and Bill Pennington (T-24), Ayat Osman (CPUC/ED) Action Plan will be used as a tool: To create a road map to plan updates for the next two-code cycles (T24) to get to ZNE 2020 residential and 2030 commercial, To create a road map to plan key updates to T-20 beyond the next 3- years Improve coordination between State energy code and other Federal and State regulations Prioritize key actions needed to dramatically improve code compliance and enforcement. 28

29 Background/Extra Slides 29

30 California Long Term Energy Efficiency Strategic Plan (CEESP) In September of 2008, the CPUC adopted California s first Long Term Energy Efficiency Strategic Plan presenting A single roadmap to achieve maximum energy savings across all major groups and sectors in California. Comprehensive Plan for 2009 to 2020 and beyond is the state s first integrated framework of goals and strategies, covering government, utility, and private sector actions, and holds energy efficiency to its role as the highest priority resource in meeting California s energy needs

31 Big Bold Energy Efficiency Strategies (1) All new residential construction in California will be zero net energy by 2020 (2) All new commercial construction in California will be zero net energy by 2030 (3) Heating, Ventilation, and Air Conditioning (HVAC) industry will be transformed to ensure that its energy performance is optimal for California s climate 31 (4) All eligible low-income customers will be given the opportunity to participate in the low energy efficiency program by

32 Background on R&T Chapter Strategies Goal 1: Create Demand Pull for New Technologies 1. Apply Systems approaches to establishing research priorities 2. Leverage private industry and federally funded technology research and investment 3. Enhance market intelligence and behavioral research activities related to EE technologies 4. Expand activities to create market pull for energy-efficient technologies 32

33 Background on R&T Chapter Goal 2: Targeted R&D Strategies (cont..) 1.Develop general R&D community support for support of Big Bold Initiatives 2.Promote cost-effective near term performance enhancements of existing technologies 3.Develop initiatives aimed at PIER to support larger gains in support of Big Bold Initiatives 4.Develop initiatives aimed at ET to support Big Bold Initiatives 33

34 R&T Chapter Guiding Strategies Engage the full-range of participants: private entities, national labs, clean energy and environmental groups, green venture capital firms, Federal, State, and local government, utilities and consumers. Employ systems approach to establishing research priorities Identify new technologies and enhance existing technologies to make them better and improve their uptake and use Breakthrough in advanced new technologies and incremental technology performance improvements for existing technologies Holistic approach of building design, delivery and operations Directed research and technology investment Facilitate paths-to-market for technologies and enabling/supporting practices through directed research and technology investment, market push/pull techniques, and targeted product distribution methods Apply social and behavioral science theory to encourage the adoption and best use of resources and energy efficient technology 34

35 Details on ETP Roadmaps (PD) Within their scope, the roadmaps should identify: Key stakeholders in Research, Development, Demonstration, and Deployment (RDD&D) that could be engaged in the process of developing and implementing the roadmaps; Current gaps in technologies throughout the lifecycle of technology development and deployment; Linkages of activities among the six Emerging Technologies Program elements, and with the IOUs core energy efficiency programs and targeted external initiatives; and Targeted steps to advance the deployment of Emerging Technologies, such as scaled-filed placement, demonstrations, and technology development support projects. The roadmaps should be completed and submitted for Commission Staff s review by the end of the fourth quarter of 2013, in preparation for their inclusion in the IOUs energy efficiency portfolios. 35

36 C&S Program (4) Targeted incentives to boost the low compliance rate of targeted codes and standards Possible recommendation: the IOUs to examine and potentially pilot the use of incentives to support code compliance. Staff s proposal regarding the threshold criteria for using incentives as follows: Existing (adopted) code and standards with documented and verified low compliance rates AND with a minimum of two-year gap between the date the standard has been adopted and its effective date; Existing (adopted) and/or new Reach Codes; and Future codes and standards that have not yet been adopted by the CEC but have undergone technology assessment through ETP and for which CASE studies have been prepared. the IOUs to work with the CEC and the CPUC to obtain recommendations on areas of low code compliance based on documented/verified low compliance rates for existing codes

37 PD Guidance on ETP (Order) The major recommended revision to the SW ETP is designing the program to balance its portfolio of emerging technologies projects. 37 For each of the three program goals, provide a detailed plan (program activities) on how the six program elements will be utilized to meet the goals (including updates to the quantifiable targets (objectives), timeline, and budgets) while addressing the various market sectors and end-uses; Provide a planning budget allocation by market sectors and end-use for each program element. Provide a budget for the following key market sectors: Residential, Commercial, Industrial and Agricultural, and for the following key end-uses: Heating Ventilation and Air Conditioning advanced technologies, Plug-Loads and controls, Lighting, Integrated building design and operation, and Other; For each program element, provide a planning budget allocation for short-term projects (within the program-cycle) versus long-term projects (projects that will exceed 3 years). For Technology Assessments, provide a planning budget allocation for assessing new advanced and/or unproven technologies versus emerging and/or underutilized technologies.

38 Key Areas of ETP Portfolio Balance 1. Market Sectors & End Uses : balancing the portfolio of emerging technologies is critical to advancing EE technologies to ensure comprehensive inclusion of different market sectors and end uses. 2. Short-term (1-3 years or within the program cycle) versus Long-term (over 3 years) Assessments: there is a need to balance short-term projects versus longterm projects targeting assessing and demonstrating advanced technologies needed to meet the CAEESP goals of achieving ZNE by 2020 in residential sector and by 2030 for commercial sector as detailed in the CAEESP. 3. New Advanced and un-proven versus Emerging and/or under-utilized Technologies: planning for assessing new advanced and/or unproven technologies versus emerging and/or under-utilized technologies needs to be built in the earlier stages of the program design. Unproven technologies are technologies that require rigorous assessment of to prove their technically viability. Under-utilized emerging technologies are technologies with verified referenced low market penetration rates. 38

39 Key Areas of ETP Portfolio Balance 1. Market Sectors & End Uses : balancing the portfolio of emerging technologies is critical to advancing EE technologies to ensure comprehensive inclusion of different market sectors and end uses. 2. Short-term (1-3 years or within the program cycle) versus Long-term (over 3 years) Assessments: there is a need to balance short-term projects versus longterm projects targeting assessing and demonstrating advanced technologies needed to meet the CAEESP goals of achieving ZNE by 2020 in residential sector and by 2030 for commercial sector as detailed in the CAEESP. 3. New Advanced and un-proven versus Emerging and/or under-utilized Technologies: planning for assessing new advanced and/or unproven technologies versus emerging and/or under-utilized technologies needs to be built in the earlier stages of the program design. Unproven technologies are technologies that require rigorous assessment of to prove their technically viability. Under-utilized emerging technologies are technologies with verified referenced low market penetration rates. 39

40 Illustration of Portfolio Budget Plan 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cross-Cutting Industrial & Agricultural Commercial Residential Assessment Strategy: Short versus Long Term Technolgoy Category: New/Unproven versus Emerging/Under-utlized

41 Illustrative Example Sector Budget Distribution Short-term Long-term New/Unproven Emerging/Underutlized Residential 30% 20% 10% 17% 13% Commercial 30% 18% 12% 14% 16% Industrial & Agricultural 25% 15% 10% 12% 13% Cross-Cutting 15% 10% 5% 7% 8% Total 63% 37% 50% 50% Total 100% 100%

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