Variability among state/regional structures and rules is a barrier to achieving a well-functioning energy market that provides clean and cost-effective electricity. That’s the conclusion of a paper published by VAEEC Business Platinum member E4TheFuture, November’s Featured Member of the Month. E4TheFuture intends that the paper will help inform organizations who wish to improve governance structures and market rules.
Which areas of the U.S. enable the voices of clean energy and advanced energy technology advocates as decision-makers in the market structures — such as PJM Interconnection* — that govern their playing field? To what extent are these voices provided a vote, compared with traditional power generators, transmission and distribution companies, utility regulators, and “legacy” leadership? How is the Federal Energy Regulatory Agency (FERC) involved? Can missed opportunities of the past be transformed from challenges into opportunities? These questions are raised in E4TheFuture’s paper, authored by Synapse Energy Economics consultants with an introduction and conclusions by E4TheFuture. The paper, Regional Energy Markets: Do Inconsistent Governance Structures Impede U.S. Market Success?, is available as a free download.
VAEEC member E4TheFuture is a nonprofit that promotes residential clean energy and sustainable resource solutions to advance climate protection and economic fairness. The organization does this by influencing federal, state and local policies, and by helping to build a resilient and vibrant energy efficiency and clean energy sector. “E4” stands for energy, economy, equity, and environment: promoting clean, efficient Energy; growing a low-carbon Economy; ensuring low-income residents can access clean, efficient, affordable energy (Equity); restoring a healthy Environment for people, prosperity and the planet. E4TheFuture was known as Conservation Services Group (CSG), until the sale of its operating programs and brand in 2015 to CLEAResult.
Steve Cowell and Sarah Jackson
In August 2016 president of E4TheFuture Steve Cowell, with Sarah Jackson and Paul Peterson of Synapse Energy Economics, hosted a briefing call about the Regional Energy Markets paper. Jackson and Peterson reviewed each region’s market governance structure, noting what Synapse found and inviting questions.
Of particular interest to VAEEC, it was noted during the briefing that PJM’s current voting members representing advanced energy technology interests are a fragmented group of small companies, which results in a diluted voice on these issues. Paul Peterson pointed out that wind energy advocates are active but overall, more participation by clean energy advocates either via the Public Interest & Environmental Organizations User Group or through development of a separate voting sector such as the Alternative Resources sector in New England, may be helpful. Steve Cowell raised the possibility of creating a user group for PJM’s alternative resource sector, which might be able to evolve into such a voting sector.
“The full range of resources should be explicitly included,” says Steve. “Clean energy resources such as energy efficiency and other distributed energy resources along with demand response need to be more strongly represented in wholesale electricity markets through a more evolved ISO and RTO governance.”
A September 2016 blog by Dylan Reed and Arvin Ganesan of Advanced Energy Economy (AEE), How Grid Governance Stands in the Way of Advanced Energy Progress, recaps the paper’s highlights with additional AEE commentary on the challenges advanced energy resources face under the current variable structures of regional and state electricity market governance.
*PJM Interconnection coordinates the movement of wholesale electricity and ensures power supplies for 61 million people in 13 states & D.C. On October 21, a new Learning Center highlights features of the Markets and Operations page: a real-time snapshot of PJM’s operations and markets, current load, fuel mix, locational marginal prices and ancillary services. The new page explains the dashboard’s wind and solar power graphs.
Last week (Oct. 6, 2016), the Virginia Energy Efficiency Council held a successful workshop for utility staff, evaluators, regulators, implementers and other stakeholders on EM+V 2.0 (Evaluation, Measurement + Verification).
This past spring, while we at the VAEEC were drafting our comments and collecting those from member organizations to the State Corporation Commission on the establishment of EM+V protocols, we took the opportunity to discuss this concept of “Enhanced EM+V”, “EM+V 2.0” or “Automated EM+V”. For the purposes of this post, we will use the term “EM+V 2.0” moving forward. As we stated in our comments, “these methods can provide opportunities for utilities and regulators to gain program insights in near real-time, speed up the evaluation process and potentially reduce the associated costs.”
During a conference call with our utility members to review and provide feedback on our comments, there was general agreement that a workshop to delve deeper into this complex topic would be useful. In the VAEEC’s role as a resource provider to our members and stakeholders, it made sense for us to take this on.
Our expert presenters came from diverse backgrounds, which allowed our participants to learn about EM+V 2.0 from a variety of different perspectives. Our presenters included:
Katherine began the workshop with a quick primer on EM+V in general, including why evaluation is necessary for utility programs and the advantages and challenges of EM+V 2.0. She also discussed how EM+V 2.0 fit into the bigger picture and provided some examples of which programs it is useful to evaluate and which ones it may not be useful for. She also briefly mentioned her work as the independent evaluator in Arkansas and how that evaluation model works.
Following Katherine, was Maggie Molina with ACEEE who discussed ACEEE’s work in this field and discussed the findings from their report on the subject.
Next, was Jake Oster who works for EnergySavvy, a company whose software is used in this field. Jake discussed their product and provided several client case studies on the residential side.
Jessica Granderson with the Lawrence Berkeley National Lab presented on the EM+V 2.0 pilot programs they are doing as well as providing some examples of commercial EM+V 2.0.
Our last speaker of the day was Tim Petit who summarized some of the content already discussed by previous speakers and went into further detail about a NEEP report that came out recently.
All of their presentations can be accessed via links above and found on our resources page.
Following all of the presentations, we welcomed all of the presenters back to the front of the room for a panel discussion on what had been previously discussed, to answer questions and to start the dialogue on next steps.
We plan to follow up with participants with a survey to get feedback on how to continue the conversation.
From my perspective, simply having the number of participants we had and knowing they were engaged on the issue made this workshop a success. We appreciated the thoughtful questions and the discussion that ensued.
A lot has happened on the building codes front since we put out a call for nominees for the board of the Virginia Department of Housing and Community Development (DHCD). As you may recall, this board is charged with updating Virginia’s building codes.
The board is comprised of 14 members: 11 appointed members who represent Virginia’s congressional districts and three ex-officio members who represent the Virginia Housing Development Authority (VHDA); the Virginia Building Code Officials Association (VBCOA); and the Virginia Fire Services Board (VFSB).
Over the last several years, the makeup of this board has changed in a positive way. As a demonstration of his commitment to energy efficiency, Governor McAuliffe has appointed several members to this board, including one specifically recruited by the VAEEC, who acknowledge the science and economics that support rigorous energy codes.
However, even with the new board diversity, there is much work to be done. In 2014, Virginia adopted the 2012 “model” building codes published by the ICC with amendments. In the case of the residential codes section, Virginia’s amendments created a code that looks more like the 2009 IECC rather than the 2012 IECC. Per Virginia policy, amendments made in previous years stand until they are expressly removed or altered by the board.
Given that there are few substantive changes between the 2012 and 2015 IECC standards, if Virginia does not adopt these new standards, we will remain woefully behind our neighbors who have already adopted the 2012 and/or 2015 IECC standards for new homes.
Check out this great fact sheet on Virginia and the 2012 IECC codes.
In the most recent State Energy Efficiency Scorecard, the American Council for an Energy Efficient Economy (ACEEE) ranked Virginia 28th in the country on building code regulations, and there is still considerable work to be done.
Currently, the only change to the 2012 residential amendments that has received support from the board is changing the requirement for high efficiency lamps in new homes from 50% to 75% (an improvement the DHCD board declined during the last cycle). VAEEC Governance Board member Andrew Grigsby of the Local Energy Alliance Program (LEAP), has two proposals before the board to require mechanical testing to measure residential building air-tightness and duct leakage (doing away with the visual inspection options). These proposals will be taken up at the next meeting on October 24th along with:
- Commercial energy codes: Maintaining current projection factors and Solar Heat Gain Coefficient (SHGC) formulas and declining weaker 2015 IECC specs for this element.
- Eliminating the credit for on-site generation in the Energy Rating Index compliance option.
- Increasing the requirement for exterior wall insulation from R15 (or R13 cavity + R1 insulated sheathing) to R20 (or 13+5).
Proposals that were voted out unfavorably at the September Codes and Standards Committee:
- Adopting the 2015 IECC without alteration
- updating the attic insulation requirement from R-38 to R-49 (per the 2012 IECC)
- Requiring that replacement windows meet minimum efficiency requirements when a permit is required (per the 2012 IECC)
- Removing an amendment allowing efficiency trade-offs in buildings with less fenestration (per the 2012 IECC)
The Governor’s Executive Committee on Energy Efficiency has been presented data showing advanced building energy codes should be a vital component for Virginia to meet its goal to reduce energy consumption ten percent by 2020.
Everyone wins when new homes are built to the most cost-effective efficiency standards: consumers, builders, trades, grid operators, and society as a whole. This is why VAEEC continues to support rigorous energy codes.
Upcoming Important Dates:
10/24/16: DHCD board committee meets to approve or reject remaining proposals
11/21/16: DHCD Board meets to adopt draft proposal of new code regulations
Winter 2017: Draft regulations published in the Virginia Register for public comment
February-June 2017: Public comment period on draft regulations
6/19/17: Public Hearing on draft regulations
September and October 2017: DHCD board committees meet to vote on final regulations
November 2017: DHCD board adopts final code regulations
The full DHCD board timeline found here. Or check the DHCD website for details.
Last week (September 26, 2016) I started my new position of Program Coordinator with Virginia Energy Efficiency Council, where a large portion of my job is dedicated to building coalitions of PACE (Property Assessed Clean Energy financing) supporters throughout the Commonwealth. Being relatively new to the world of PACE, I immediately immersed myself in PACE research. Therefore, imagine my excitement when I learned VAEEC was kicking off their webinar series with a “PACE in Virginia” webinar!
The webinar promised an overview of PACE financing, including benefits to contractors and property owners, case studies, and a breakdown of what PACE looks like in Virginia, presented by three speakers with amply knowledge and experience in the field. And it delivered.
I found the webinar to be incredibly beneficial. Elyssa Rothe’s (PACENation) overview reinforced the basics of PACE, which provided good background knowledge for the rest of the presentation. Abigail Johnson (Abacus Property Solutions) dove further into the benefits of PACE and provided two case studies as examples. Bill Greenleaf (Virginia Community Capital) ended the webinar with a summary of what PACE looks like in Virginia.
Here are my greatest take-aways from the webinar:
- PACE is for energy efficiency and renewables and many different building types. can be used for projects that either reduce or generate energy, including energy efficiency upgrades and renewable energy. Furthermore, it is available for all kinds of commercial building types; multi-family, hotel, office, retail, agriculture, and industrial. Government owned buildings are the only exception.
- PACE offers several advantages over traditional bank financing. It covers 100% of a project’s costs, while offering a competitive interest rate. Instead of the typical 5-7 year terms, PACE can be financed for up to 20 years, which lowers annual payments. Financing is repaid annually via the building’s property tax assessment. Additionally, assessments stay with the property and automatically transfer to a new owner.
- In Virginia, local governments must past ordinances to establish PACE programs or contract to a third party. Commercial PACE, or C-PACE, was enhanced in 2015 and applies to commercial buildings with at least 5 units.
If you were unable to attend the webinar, I urge you watch our “PACE in Virginia” webinar recording. Even if you already have a good understanding of PACE, this webinar will serve as a great refresher as you listen to experts well entrenched in the field.
Please note that we also have a PACE page on our website with updates and resources.
Virginia could help the industrial sector seize enormous opportunities to cut carbon emissions while saving money and making manufacturers more competitive through industrial energy efficiency. That’s according to Business Gold member David Gardiner and Associates, October’s Featured Member of the Month.
A new report by the Alliance for Industrial Efficiency (a project of VAEEC member David Gardiner and Associates) finds that Virginia could reduce carbon emissions by over 2.5 million tons annually by 2030 from industrial energy efficiency – nearly equal to the emissions from a coal-fired power plant – and save the Commonwealth’s businesses over $4 billion on their electricity bills in the process. Industrial energy efficiency could achieve nearly one-third (31 percent) of Virginia’s emission reductions called for under EPA’s Clean Power Plan. Nationwide, industrial efficiency and CHP/WHP could save more than 396 megawatt hours of electricity; 174 short tons of carbon dioxide (the equivalent of 46 coal-fired power plants); and $298 billion in utility bill savings.
VAEEC member, David Gardiner and Associates (DGA), is an Arlington-based strategic advisory firm focused on climate change, clean energy, and sustainability that helps clients with strategic planning, research and analysis, and improved communications through partnership building and advocacy. The Alliance for Industrial Efficiency, a project of DGA, promotes state and federal policies to support U.S. manufacturing competitiveness through enhanced industrial efficiency. The Alliance’s diverse coalition of businesses, labor groups, and non-profits work to improve energy efficiency in America’s industrial sector.
In September, the Alliance for Industrial Efficiency released a report ranking U.S. states by their ability to slash carbon emissions through industrial energy efficiency. As the industrial sector is the largest energy user in the U.S. economy, improving its efficiency could significantly reduce emissions in the electricity sector nationwide.
The report highlights a key tool for states looking to reduce emissions to comply with the Obama administration’s Clean Power Plan or exploring options for utility planning. It also shines a light on an opportunity for manufacturing, mining, construction, and agricultural industries to realize dramatic savings through investments in industrial energy efficiency and combined heat and power (CHP) and waste heat to power (WHP) technologies—the practice of powering and heating industrial facilities with otherwise-wasted resources and energy. Even in the absence of the Clean Power Plan, improving energy efficiency in the industrial sector makes business sense and can save industry billions of dollars in avoided energy costs.
“This report demonstrates that we can cut carbon while saving businesses money,” said Jennifer Kefer, Executive Director, Alliance for Industrial Efficiency. “With this analysis, we have exposed the myth that clean energy and manufacturing competitiveness are in conflict. To the contrary, by investing in industrial efficiency, we can reduce emissions while simultaneously slashing utility bills, creating jobs, and strengthening our industrial sector.”
Download the Alliance’s report and fact sheets.
Guest Blog Post: Johnette Johnson, VAEEC intern and University of Richmond student
With a score of 13 points out of a possible 50 (same score as 2015), Virginia dropped two rankings from 31 to 33 in this year’s State Energy Efficiency Scorecard. According to the scorecard press release from the American Council for an Energy Efficient Economy (ACEEE), Virginia’s lower score is due to our inability to keep pace as other states expanded efficiency efforts.
Download the Virginia one-pager, the full State Energy Efficiency Scorecard and report, or the updated Virginia entry in their State and Local Database.
The State Scorecard is a helpful illustration of the strengths and weaknesses of each state’s energy efficiency components and provides an opportunity for all states to learn from each other.
For instance, if we look at Virginia’s utility programs, our scoring is a negative 0.5 points out of 20, placing our utility programs at the 51st rank alongside West Virginia. Virginia’s State Corporation Committee, who regulates utility programs, allocates a very small budget towards electricity and natural gas efficiency programs thereby energy savings are some of the lowest in the country.
The ACEEE also encourages growth in Virginia’s Combined Heat and Power (CHP) sector. CHP is the successful generation of electricity and useful thermal energy in a single, integrate system that produces 80% combined efficiency as opposed to 45% for traditional power plants. However, CHP systems require the purchasing of backup power from the electric grid as well as the selling of excess electricity back to it. A lack of established parameters and procedures for connecting to the grid drives up costs and stifles CHP deployment in Virginia.
California reaps the benefits of CHP through a total of 28 installations. Another installation of note is their Self-Generation Incentive Program (SGIP) that provides incentive payments to support the commercialization of new, efficient CHP technologies. CA’s CHP energy resources are held to the standards of the Qualifying Facilities and CHP Program Settlement; the program provides targets and requirements that facilitate the efficient production of CHP.
While highlighting other state’s successes, the Scorecard does not fail to recognize Virginia’s innovative efficiency programs. Virginia received a stellar five points out of a possible seven for state-led initiatives, ranking us 10th in the nation for these programs. This performance marks a high potential for the future of the state’s energy efficiency programs. Virginia exhibited notable performances in our building code policies as well, ranking 28th in the country.
The Scorecard can be used as a tool to motivate Virginians to take note of the Commonwealth’s energy efficiency setbacks and to push for improvements that our neighboring states are already implementing.
September 23, 2016
Chelsea Harnish, VAEEC Executive Director
What an inspiring day at the Clean Energy Business Roundtable in Roanoke with Virginia Governor Terry McAuliffe. Plenty of VAEEC members were represented, including Community Housing Partners, Trane, Virginia Community Capital, Oracle (OPower), Appalachian Power and Siemens.
You can track some of the action via #NewVAEconomy.
A few things we heard from folks in the room:
- Governor McAuliffe kicked it off with a number of data-based arguments for energy efficiency and clean energy being cornerstones of the #NewVAEconomy, including: in 2013, the Clean Energy Census for Virginia found that clean energy- including wind, solar, EE, biomass and geothermal- was a $500,000 industry. Looking at preliminary results from our 2016 census, the revenue from this industry jumped to $2.1 billion with EE making up $1.2 billion (and the census is still open).
There was a story from the Roanoke Times that includes that first stat and some other highlights from the day.
- The cap for VA SAVES should be extended beyond $5M. Trane noted that school systems are looking to use this program, but the money will eventually run out. With the interest rate so low, schools could really do more with VA SAVES than current financing structure allows.
- Monica Rokicki with Better Building Works stated that a building-science based approach is critical for any renewable energy and energy efficiency policy decisions. We checked in with Monica after the event and got a bit more detail from her: “We have to factor in health and safety. For example, many clients think insulation is a good thing for energy efficiency in buildings. They are right except that if they don’t account for the fire hazards like air leakage at the tops of buildings or old knob and tube wiring, they are creating a very dangerous situation. Likewise, doing work without measuring before and after ventilation can create very bad air quality issues — making existing ones worse or even creating new ones. This is why independent third party verification by certified auditors is critical.” Plus, it ensures that the energy savings are on par with what we predicted.
- The Roanoke Chamber of Commerce (host of the event), emphasized the need for technical training in high schools. Many in the room agreed with this need and several stated that including facilities manager skills in these programs is key as many people in these positions are at or near retirement age with very few qualified candidates available to fill in.
- Oracle Utilities (OPower was recently purchased by Oracle), which operates worldwide, called for the Department of Mines Minerals and Energy (DMME) to get more involved in SCC proceedings.
- Community Housing Partners highlighted their workforce training programs and noted that baby boomers currently occupy a significant segment of energy-related jobs and they are starting to retire.
- Appalachian Power chimed in with the utility perspective that customers have a hard time paying their bills, so collaboration is key to ensure those who are already struggling don’t have to pay more.
A huge thanks for to the Roundtable participants for taking time out of their busy schedules to share their experiences and expertise and to Governor McAuliffe and his staff for joining and supporting the Commonwealth’s clean energy and energy efficiency industries.
We were proud to help organize the Clean Energy Business Roundtable with our partners at Advanced Energy Economy, AJW Consultants, Chambers for Innovation and Clean Energy (VAEEC member), U.S. Green Building Council (VAEEC member) and the Roanoke Regional Chamber of Commerce.
#NewVAEconomy @GovofVirginia
We expect a packed house yet again for the VAEEC Fall Meeting on November 29th and afterward at our highly anticipated inaugural Energy Efficiency Leadership Awards ceremony. This is an excellent opportunity to showcase your company or organization to leaders in Virginia’s energy efficiency industry.
Get the latest information on the sponsorship levels here.
#EEDay2016
On October 5, 2016, a network of groups and partners across the country will join together to promote the benefits of energy efficiency, for the first-ever, nationwide, Energy Efficiency Day campaign. This social media and press effort aims to raise awareness among the public and media by organizing participants to share related content, stories and concrete examples of the positive impact of energy efficiency.
- Highlight positive, nonpartisan messaging about energy efficiency
- Show the positive impact of energy efficiency across a range of energy users
- Share concrete, effective ways to save energy and money
Opportunities to Participate:
Government, corporate, and industrial partners can help support Energy Efficiency Day 2016 by sharing appropriate content and reaching out to the media on and before October 15, 2016. Help amplify the campaign’s energy efficiency messages via your communications channels:
- Use the campaign’s sample social media posts and memes (or your own) to direct visitors to energy efficiency tips on your own website.
- Write and post a blog about your energy efficiency success story, tips, or stories ahead of the 2016 Energy Efficiency Day.
- Issue your own press statement urging your audiences to save energy, save money.
- Promote your own energy efficiency success stories during and after the campaign.
You can download the Energy Efficiency Day toolkit here and access tons of other resources (sample content, logos, etc) online.
We encourage all VAEEC members to take part in Energy Efficiency Day through whatever appropriate means, including using #EEDay2016 in social media, pitching reporter contacts and reaching out to your customers/members/supporters via email leading up to and on October 5.
The inaugural Energy Efficiency Day is a collaborative effort of regional and national organizations working to promote energy efficiency. Participating organizations include:
- Advanced Energy Economy
- Alliance to Save Energy (VAEEC member)
- American Council for an Energy-Efficient Economy
- Appliance Standard Awareness Project
- Climate Nexus
- E4theFuture (VAEEC member)
- Keystone Energy Efficiency Alliance
- Midwest Energy Efficiency Alliance
- Northeast Energy Efficiency Partnerships
- Northwest Energy Efficiency Alliance
- NRDC
- Resource Media
- Sierra Club (VAEEC member)
- Southeast Energy Efficiency Alliance
- South-Central Partnership for Energy Efficiency as a Resource
- Southwest Energy Efficiency Project
A number of other companies and organizations have already expressed interest in participating in Energy Efficiency Day 2016. A full list of supporters (updated frequently) is available here.
This blog post was written by David Cohan, Building Energy Codes Program Manager at the U.S. Department of Energy, originally posted to the Office of Energy Efficiency and Renewable Energy website in May 2016, and republished on vaeec.org with permission.
I recently got back from Louisville, Kentucky, where I was representing DOE in the latest round of energy code development hearings. While the people who participate in the development process know energy codes inside and out, I know they are not as clear to the broader public. So let’s take a step back. Here’s a primer on what energy codes are, how they are developed, adopted, and enforced, and what DOE’s role is in these processes. Future blog posts in this series will zoom into specific topics.
First, here are a few key points:
1. CODE DEVELOPMENT
How it works: National model energy codes are developed by two private organizations, ASHRAE and the International Codes Council. ASHRAE develops the model commercial energy code, known as 90.1. The International Code Council develops the International Energy Conservation Code (IECC), which contains chapters for both residential and commercial buildings. Any interested party can participate in the development processes by submitting proposals to change the code and commenting on others’ proposals. The codes cycle is continuous, with new codes being developed every three years. Final versions of each new edition are determined by a vote of the 90.1 committee members for ASHRAE and by the International Code Council membership for the IECC.
DOE’s role: DOE participates in both the ASHRAE and ICC development processes, but has no special status. DOE develops and submit code change proposals that strive to make cost-effective, energy efficient upgrades to current model codes. After each new model code is published, DOE also must determine if the new version saves energy relative to the old version.
Note: David Cohan has another blog worth reading on this topic, “How are Building Energy Codes Developed” from August 2016.
2. CODE ADOPTION
How it works: Most codes are adopted at the state level, though, in about 10 states they are adopted by cities. State adoption can occur directly by legislative action, or through regulatory agencies authorized by the legislature. Cities adopt codes through their mayors, councils, or committees depending on their form of government. Once adopted, the code becomes law within the particular state or local jurisdiction.
DOE’s role: DOE provides technical assistance to state and local governments to support their adoption processes. DOE responds to state and local requests and it also develops customized reports for every state detailing the benefits of upgrading to the current model codes. To ensure that its information is used effectively, DOE works with the Regional Energy Efficiency Organizations (REEOs) and the National Association of State Energy Officials (NASEO) who have connections in almost every state and often participate directly in the adoption processes. DOE support also includes tracking state adoption status, coordinating activities among stakeholders, and technical analysis.
3. CODE COMPLIANCE
How it works: The key to realizing the full savings potential of building energy codes is by ensuring that builders are complying with them. Design and construction professionals are most likely to comply with the code when they are given education and training, particularly after a new code is adopted. Enforcement is almost always done by building permit office staff at the local (city) level who typically review plans first to ensure they are compliant and then conduct field inspections to verify that the plans are being followed during construction.
DOE’s role: DOE develops and regularly updates software (REScheck and COMcheck) to simplify and clarify compliance with model energy codes and standards, as well as a number of state-specific energy codes. DOE also develops education and training materials that are available free and used by governments, organizations and trainers across the country.
DOE has also developed an affordable methodology for states and cities to determine energy and dollar savings opportunities associated with increased energy code compliance in single-family homes. Field studies based on the methodology have already been implemented in nine states with more underway. The data that comes from these studies helps focus education and training programs and provides a basis for utilities and states to determine whether such programs will be cost-effective. DOE is currently developing a parallel methodology for the commercial sector.
