Program Years 2021-2026 CPUC Energy Division Syreeta Gibbs, Kapil - - PowerPoint PPT Presentation

Energy Savings Assis istance (E (ESA) Goals ls Proposal for Program Years 2021-2026

CPUC Energy Division Syreeta Gibbs, Kapil Kulkarni, Sarah Lerhaupt & Jason Symonds May 20, 2020 (Workshop resumes at 1:30pm)

Presentation Overview

1. Proposed Goals 2. How To Achieve Goals 3. Why Goals Are Needed 4. Challenges

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ESA Post-2020 Goal Setting

• Depth of Energy Savings Goal: Determine resource

and non-resource savings at household level

• Participation Goals: No statute requirements like

previous 2020 goal

• Portfolio Energy Savings Goal: Influenced but not set

by Potential and Goals study

• Additional Metrics: To be proposed by IOUs

Guidance Decision asked IOUs to set own ESA goals and metrics for the next cycle.

IOU Applications are consolidated in proceeding A.19-11-003.

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Next: Guiding Principles

Guiding Principles

Par arity Equity St Stabilization Quality Customer- Cen entric Op Optimization

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Next: Proposed Goals

Proposed Goals

HOUSEHOLD ENERGY SAVINGS PROGRAM COORDINATION Goal #1 Each IOU's average treated household energy savings across the ESA program increases at least 5 percent year over year. Goal #2 Maximize ESA household participation and coordination in

• ther clean

energy programs. Goal #3 Build a universal low- income customer application system and capabilities for sharing application and energy usage information with program partners.

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Next: Goal #1

Goal #1: Increase Household Energy Savings Annually by at least 5%

Each IOU will be able to customize how they reach this goal by showing increasing average efficiency per household during the program cycle. Energy Efficiency Treatment Tiers

• Tier 1 Basic
• Tier 2 Strategic
• Tier 3 Advanced

This goal can be met by ramping up the number of Tier 2 and 3 treatments over time. This goal also allows ESA contractors the opportunity for re-training and learning new skills.

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Next: EE Tiers

Energy Efficiency Tiers

Tier 1 - Basic Tier 2 - Strategic Tier 3 - Advanced

Expected Efficiency Savings 5% 5% to 15% 15% to 50% Description The mix of ESA measures currently proposed in the applications. Focus on equipment and appliance replacements and load shifting technologies. Deep energy retrofits providing equipment, appliance replacement, load shifting technologies, and building envelope treatment. Eligibility New ESA participants New or previous ESA participants New or previous ESA participants

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Next: Savings Ramp

Ramp Average Savings Per Household

ESA participation in Tiers 2 and 3 (represented by the solid lines) should ramp up over time, resulting in increasing savings per household (columns).

5% Minimum

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Sample EE Measures

For single family, multifamily, and mobile homes

STRATEGIC

Tier 2 Measures Save 5% to 15% Of Energy Use ฀ Repair, update or replace HVAC and Hot Water Systems, includes heat pumps ฀ HVAC and HW control technologies ฀ Efficient Appliances and Lighting ฀ Air Sealing, Duct Sealing ฀ Energy Management Technologies ฀ Demand response and other clean energy measures

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Next: Advanced

Sample EE Measures

For single family, multifamily, and mobile homes

ADVANCED

Tier 3 measures save 15% to 50% Of Energy Use

• Windows and Doors
• Advanced Insulation, including High Performance Attics
• Additional Building Shell Upgrades
• Right-sizing HVAC and Hot Water Systems
• Improve or replace duct work, water pipes, and waste heat recovery
• Cool Roofs

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Next: Multifamily

Sample EE Measures

For multifamily properties

STRATEGIC

Save 5% to 15% Of Energy Use

ADVANCED

Save 15% to 50% Of Energy Use Additional measures unique to MF: ฀ Common Area Measures, including central boilers or similar ฀ Clean energy programs unique to this sector, like the IOU Multifamily electric vehicle charging stations and Solar on Multifamily Affordable Housing (SOMAH) Additional measures unique to MF:

• TBD

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Next: Goals 2 and 3

Goal #2 and #3: Program Coordination

Goal #2: Maximize ESA household participation and coordination in other clean energy programs. Goal #3: Build a universal low-income customer application system and capabilities for sharing application and energy usage information with program partners.

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Next: Customer Profiles

Customer Profiles and Segmentation

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Connecting All Three Goals

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Next: Reasons

Reasons for Proposed Goals

PREVIOUSLY LOW PER HOUSEHOLD ESA ENERGY SAVINGS ENERGY BURDEN OLDER HOUSING MORE LIKELY IN NEED OF REPAIR HIGH CONSTRUCTION COSTS

ESA can serve customers better to overcome existing barriers.

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Next: Barriers

Energy Burden Energy burden is higher for CARE participants than for non-participants (LINA, 2019). Energy burden is highest for low-income households in California (ACEEE, 2016). Renters in California are more likely to spend 30%+ of their income on housing costs (2017 American Community Survey). Low Energy Savings from ESA Between 2015 to 2017 average electric savings per household was less than 5 percent (for some utilities less than 1 percent), and average gas savings were 2 percent or less. Focus on the low hanging fruit - nearly half of all distributed ESA measures from 2016 to 2018 were torchieres or light bulbs.

BARRIERS

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High Construction Costs Low-income households are unlikely to be able to afford customized retrofits on their own. The Terner Center identified that construction costs rose by 12.6% in San Francisco, 13.6% in Los Angeles, and 11.8% nationwide between 2011 and

• 2016. Regulations (e.g. permits), market

dynamics (e.g. material costs), and construction efficiency (e.g. prefabrication vs labor) influence costs. Older Housing California homes were mostly built before 2000; 86.5% of homes were built 2000 (American Community Survey 2017).

BARRIERS

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Next: Commission Priorities

Environmental and Social Justice (ESJ) Action Plan Greenhouse gas (GHG) reductions Health Benefits and Safety Improvements Wildfire Resiliency Peak Demand Reduction Connect to and learn from CPUC Programs

Reasons for Proposed Goals

ESA can effectively connect with Commission priorities:

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Next: ESJ Plan

Environmental and Social Justice Actio ion Pla lan

• In 2019, the CPUC adopted a plan (to be updated every 2 years) to improve services

to targeted communities.

• This includes prioritizing investments in clean energy programs, including energy

efficiency, renewable energy, storage, electric vehicle infrastructure, etc. for these communities.

• ESA/CARE population falls mostly in-line with the communities the ESJ Plan is meant

to funnel help towards.

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Next: GHG

GHG Reductions

• Reducing energy consumption reduces greenhouse gas emissions (from energy

generation).

• Prioritizing treatments in disadvantaged communities as identified by CalEPA’s

EnviroScreen Tool offers an opportunity to limit pollution in sensitive areas.

• Co-benefit measures, like cool roofs, can reduce heat waves and reduce climate

change impacts. (LBNL, 2019)

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Next: Health and Safety

Health and Safety

• Health benefits include reduced chronic illnesses, respiratory illnesses,​ and

healthcare costs.​

• Safety benefits include ending combustion-related safety threats and adding building

integrity.

• Reduce equipment related failures (expect a continuation of current ESA safety

protocols).​

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Next: Coordination

Program Coordination

• ESA households are also eligible for SASH, SOMAH, SGIP, LIHEAP, and EE

mainstream programs.

• To-date, external leveraging is mainly with Community Services and Development

(CSD) LIWP / LIHEAP and municipal / water utilities.

• Advanced Energy Rebuild Program evaluators found that presenting one forward-

facing program to customers works to increase interest and participation (Opinion Dynamics and CPUC, 2019).

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Next: Peak Demand

• Lessen energy consumption during peak residential energy consumption periods.
• Program year 2017 evaluation for Home Upgrade and Advanced Home Upgrade

projects demonstrated peak demand savings.

• Advanced Home Upgrade projects were more effective at generating peak demand

savings as a percent of baseline demand – delivering at least double the peak demand savings value of the Home Upgrade projects (CPU0191.01).

Peak Demand Reduction

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Next: Resiliency

• Keep treated homes more comfortable during public safety power shut-offs.
• Allows microgrids to be planned with less generation or longer storage deployment.
• EPIC Oakland EcoBlock modeled deep energy retrofits with electrification for a block

scale microgrid aggregated savings of 58 percent over its current baseline for a low- and middle-income neighborhood (CEC-500-2019-043).

Wildfire Resiliency

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Next: Examples

Examples of What's Working Today:

Efficiency Retrofit Programs 1. NYSERDA RetrofitNY for MF 2. Rocky Mountain Institute and CEC, REALIZE Retrofit Kit for MF 3. National Grid Deep Energy Retrofit Pilot (2009-12) 4. Sacramento Municipal Utility District (SMUD) Home Performance Program (Zero Net Carbon) Program Coordination 1. PG&E, Sonoma Clean Power, and Bay Area Air Quality Management District Advanced Energy Rebuild Program 2. Massachusetts LEAN Multifamily Low- Income Energy Efficiency Program

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Next: Other Factors

OTHER FACTORS

WHAT ARE SOME OF THE POTENTIAL CHALLENGES?

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Deep Energy Retrofits Challenges

• Comprehensive residential retrofits are customized solutions – requiring more money, time, and

planning.

• Energy efficiency retrofits lack systems for scaling measures. There is no "one-size-fits-all" choice.
• Deep energy retrofits will cost more per household; costs below are illustrative.
• Multifamily Zero Net Carbon Retrofits costs ranged from $19,000 to $22,000 per unit (Rocky

Mountain Institute, 2017)

• Single Family Electrification Retrofits cost between $8,700 and $22,700 (Redwood Energy, 2017)
• What is the appropriate cost / cost-effectiveness level for deep energy retrofits?
• What is the cost and time needed to effectively train the existing ESA contractors for new,

more skilled measures?

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Next: Coordination

Program Coordination Challenges

• Properly estimate bill savings to maximize household benefit and balancing the number of needed, or

desired, contractors/treatments in the household.

• How to coordinate delivery at the administrative and implementation level that allows for seamless

delivery to low-income households.

• For a universal application system, how to ensure updates as program needs evolve or new programs

are added.

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Next: Summary

Proposal Summary

Staff proposed goals to address known barriers and explore new

• pportunities for deeper savings.

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HOUSEHOLD ENERGY SAVINGS PROGRAM COORDINATION

Goal #1 Each IOU's average treated household energy savings across the ESA program increases at least 5 percent year over year. Goal #2 Maximize ESA household participation and coordination in other clean energy programs. Goal #3 Build a universal low- income customer application system and capabilities for sharing application and energy usage information with program partners.

Next: Thank You

Thank you! Questions?

More Information on Current Income Qualified Programs: https://www.cpuc.ca.gov/iqap/

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Appendix

Inserted by Facilitator, C. Chen

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Prioritized Questions

Staff Proposal (draft)

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Next, Group discussion

Staff Proposal Discussion Questions

• What should be the starting point for the household savings goal?
• Should it increase 5% per year? Or more?
• What targets or metrics complement the savings goal? (for example,

bill savings)

• What targets or metrics conflict with the savings goal? (for example,

hardship indicator, energy burden)

• What budget level should be considered for the program?

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Continue…

• What budget limitations should be placed on the program?
• What other variables (besides burden, use, location, etc.) should

determine the tier of treatment for customers? (segmentation)

• How can renters be included and prioritized?
• How can ESA work better with other low income and clean energy

programs? (coordination)

• What lessons from the COVID crisis can be incorporated into program

design?

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