Regional Update on Efficiency Policy: Regional Update on Efficiency - - PowerPoint PPT Presentation

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Regional Update on Efficiency Policy: Regional Update on Efficiency Policy: Progress, Innovation and Challenges Presented to the Presented to the EES E Board By Jim O Reilly and Natalie Hildt November 12, 2010 November 12, 2010 OVER

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SLIDE 1

Regional Update on Efficiency Policy: Regional Update on Efficiency Policy: Progress, Innovation and Challenges

Presented to the Presented to the

EES E Board

By

Jim O’ Reilly and Natalie Hildt

November 12, 2010 November 12, 2010

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SLIDE 2

OVER VIEW OF PRES ENTATION OVER VIEW OF PRES ENTATION

  • S

tates in NE have made great progress – much to do still S tates in NE have made great progress much to do still

  • Economy and short-term politics put EE gains at risk
  • Rate-payer funded programs remain vital, need financing

in addition

  • Policies like codes, standards and building energy rating

can help move the ball forward can help move the ball forward

  • S

trong and stable funding, good coordination, customer- friendly program access are key

  • Insights for New Hampshire

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  • Insights for New Hampshire
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SLIDE 3

HOW’ S NEW HAMPS HIRE DOING? HOW S NEW HAMPS HIRE DOING?

  • Putting the ACEEE S

corecard in context Putting the ACEEE S corecard in context

  • What does it mean for N.H.?

Why should we care?

  • What’s working?

What could be better?

  • Why it’s important to get on a stronger track for EE
  • NEEP Potential S

tudy & policy recommendations

2

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SLIDE 4

DECIPHERING THE ACEEE S CORECARD DECIPHERING THE ACEEE S CORECARD

  • Other states are rapidly passing N.H. by – but why?

Other states are rapidly passing N.H. by but why?

– What makes this state unique in that it does not value EE in the

same way as ME, MA, VT , RI, CT , NY , NJ, P A and MD?

  • Also counts that N.H. has slipped

– RGGI and S

BC fund diversion/ depletions

  • S

corecard hits in transportation, other areas, but…

– Biggest hit in ‘ Utility and Public Benefits Fund Efficiency

Programs and Policy’ Programs and Policy

– Not j ust in per capita EE budgets, but %

revenue too

  • It’s as much the messaging as the money

It s as much the messaging as the money

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SLIDE 5

REGIONAL UPDATES ON EE POLICY REGIONAL UPDATES ON EE POLICY

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EFFICIENCY POLICIES ACROS S NEW ENGLAND EFFICIENCY POLICIES ACROS S NEW ENGLAND

State Policy Type Delivery Energy Savings Goals Connecticut All Cost Effective EE Utilities 1% annually Maine All Cost Effective EE Efficiency Maine Trust S et as part of Triennial Maine All Cost Effective EE Efficiency Maine Trust S et as part of Triennial Plan Massachusetts All Cost Effective EE Utilities 2.24%

  • f electricity

and 1.15%

  • f natural

gas sales annually by 2012 New Hampshire

Funding Limit ed by Cap on S BC

Utilities

In process

Rhode Island All Cost Effective EE Utilities S et as part of 3-Y ear l plan Vermont All Cost Effective EE Energy Efficiency Utility 2%of sales annually y

5

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HOW S TATES FUND EFFICIENCY HOW S TATES FUND EFFICIENCY

State Funding Mechanism Ratepayer Funding RGGI Auction Used to Supplement Efficiency Budgets Capacity Market Payments

CT S BC of 3 mills/ kWh Regulations set at 69.5% IS O-New England MA S BC of 2.5 mills/ kWh + Efficiency Reconciliation Factor (EERF) S tatute sets at 80% IS O-New England Reconciliation Factor (EERF) ME S BC set at 0.5%

  • f electric revenues and

3%

  • f natural gas revenues

S tatutes set at 100% IS O-New England NH S BC of 1.5 mills/ kWh – lowest in region Competitive Bidding Process IS O-New England RI S BC of 3.2 mills/ kWh Regulations set at 100% IS O-New England VT S et annually according to 3-Y ear Efficiency Budget Natural gas programs are set by Vermont Gas S ystem rates S tatutes set at 100% IS O-New England 6 y

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SLIDE 8

S TATE PER CAPITA S PENDING, 2007-2010* S TATE PER CAPITA S PENDING, 2007 2010

VT MA VT CT NJ 2007 RI NY 2008 2009 2010 NH

*Fi il d f h l i i ffi i di id d b h ’ i d 2009 l i S E

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 ME

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*Figures are compiled from the total state investment in energy efficiency divided by the state’s estimated 2009 population. Sources: Energy Efficiency Program Annual Reports, 2007‐2009 and Program Filings for 2010. RGGI data from Environment Northeast's RGGI Auction Tracker, available online at http://www.env‐ne.org/resources/open/p/id/715.

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COMPLEMENTAR Y POLICIES COMPLEMENTAR Y POLICIES

“ H l l k i ” i d f ffi i “ Help lock in” savings and foster progress on energy efficient technologies and practices: Building energy codes – target new buildings; training and compliance are key. Appliance standards – remove least-efficient products from the market; preserve choices. High performance building programs - improve

  • verall energy and environmental performance for

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gy p new and existing buildings.

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FROM POTENTIAL TO ACTION

A resource for leaders

  • S

tate, market, and end- use data to show where use data to show where the potential lies

  • Offers efficiency policy

recommendations, examples of best examples of best practices

  • S

tudy is electric; NEEP supports all-fuel approach

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THE BIG PICTURE AND S TEPS FOR NH THE BIG PICTURE, AND S TEPS FOR NH

  • S

tates are moving forward with EE, challenges ahead S tates are moving forward with EE, challenges ahead

  • Changes in political landscape in some states (ME, NH)

will require increased efforts to protect funding and q p g drive new directives

  • Changes in political landscape federally will likely mean

g p p y y shift back to states to set policy

  • Need to make the case that RGGI is a net positive for

p ratepayers when coupled with progressive EE policies

  • Efficiency is a long-term resource strategy that’s good

y g gy g for business, residents, the state as a whole

  • Citation on a scorecard is not the end goal – it’s the

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messages that citations sends to policymakers and the public

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SLIDE 12

THE BIG PICTURE AND S TEPS FOR NH THE BIG PICTURE, AND S TEPS FOR NH

  • Emphasis on efficiency is a perfect fit for N H

Emphasis on efficiency is a perfect fit for N.H.

– Long history of environmental stewardship 

  • Efficiency is the cheapest and quickest way to reduce carbon
  • Efficiency is the cheapest and quickest way to reduce carbon

and other harmful generation emissions, including those contributing to ground level ozone and acid rain

P d t diti f f lit 

– Proud tradition of frugality 

  • Efficiency is the least expensive energy resource available to

meet New Hampshire’s energy needs p gy

– Jobs and economic development are high priorities 

  • Growing the clean energy economy means thousands of

g gy y good, local j obs that can’ t be outsourced

– It’s patriotic 

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  • It invests New Hampshire’s dollars in New Hampshire, and

not in foreign energy sources

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THE BIG PICTURE AND S TEPS FOR NH THE BIG PICTURE, AND S TEPS FOR NH

It’s not ‘ red’ or ‘ blue’ It’s not ‘ red’ or ‘ blue’ It’s ‘ green’ … It s green

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THANK YOU THANK YOU

JIM O’ REILL Y JIM O REILL Y j oreilly@ neep.org NATALIE HILDT nhildt@ neep.org NORTHEAS T ENERGY EFFICIENCY P ARTNERS HIPS NOVEMBER 12 2010 NOVEMBER 12, 2010

91 Hartwell Avenue Lexington, MA 02421 P: 781.860.9177 www.neep.org