Posted by Ken Rosenfeld, VAEEC Executive Director (December 15, 2014)
As 2014 draws to a close, we are fortunate to look back on a year in which energy efficiency began to assume its rightful place as a key resource in Virginia. Thanks to the Virginia Energy Efficiency Council’s members and broad coalition of supporters, we proudly played a leading role in this success and are poised to accomplish much more in the year ahead.
It was an exciting year, highlighted by a couple of significant accomplishments:
- The VAEEC released the results of the state’s first-ever energy efficiency industry census, revealing a robust Virginia industry comprised of 1,300 companies, 9,400 jobs, and $300 million in economic activity.
- We played a central role in the effort to draft the new Virginia Energy Plan, and the VAEEC was the only organization asked by the Administration to present at each of the state’s Listening Sessions during the plan’s development.
The year was also notable for the number of positive signals coming out of the state government in 2014 that bode well for the future, including:
- The new Virginia Energy Plan released by Governor McAuliffe suggests a new commitment to energy efficiency as a resource and a solution to our energy needs. For the first time, energy efficiency/conservation stands alongside other energy resources as a separate chapter in the plan, rather than a sidenote or afterthought.
- The Energy Plan includes the formation of a new energy efficiency board, which will develop strategies for meeting Virginia’s longstanding, voluntary goal of a 10% reduction in energy consumption.
- The Governor issued Executive Order 31, aimed at reducing energy consumption in state buildings, potentially saving millions of dollars and positioning the state government to lead by example, and issued Executive Order 36, creating a Green Community Program that will provide Virginia localities and the private sector with a low-cost financing tool to implement energy conservation projects.
- The Governor also appointed a Chief Energy Efficiency Officer, possibly the first state-level position of its kind in the country, to ensure that positive actions are forthcoming.
Meanwhile, organizationally, the VAEEC continued to establish its presence in 2014 as a valued resource and unique coalition. Our biannual meetings were the most well-attended to date. Our membership is steadily growing. We added a LinkedIn platform where everyone can stay apprised of news and opportunities. And on a personal note, it’s been a privilege to serve as the VAEEC’s first Executive Director, coming on board back in April.
Of course, the horizon is where we are focused. Our positive momentum couldn’t be more timely, as we have several critical opportunities ahead of us:
- Thanks to the establishment of the state energy efficiency board, we finally have a platform to address Virginia’s goal of a 10% reduction in energy use through efficiency and conservation. The goal was to be accomplished by 2022 (10% below 2006 levels), but to this point there has been no statewide plan to meet it.
- The Commonwealth is grappling with how to address the federal Clean Power Plan, which calls for a significant reduction in carbon emissions from the nation’s power sector – a 30 percent reduction below 2005 levels by 2030. VAEEC will be communicating to lawmakers, regulators and others that energy efficiency offers a sensible, low-cost solution.
These are great opportunities, and we know that energy efficiency represents a rare “win-win” in energy policy — a common sense, nonpartisan, cost-effective solution that directly addresses our energy needs while creating significant benefits for the state. It is critical at this time that all Virginians come to a consensus on the need for an increased commitment to energy efficiency.
Fortunately, the VAEEC consists of an incredibly diverse and engaged membership that can accomplish remarkable feats by working together. Our membership is our greatest asset, its strength reflected in its diversity of businesses of all sizes, utilities, nonprofits, universities and local governments.
There is a tremendous amount of work to be done to turn our opportunities into results. But as we close out 2014 proud of the burgeoning energy efficiency industry in Virginia, the momentum coming out of Richmond, and the number and variety of interested parties as reflected in the VAEEC membership, there’s reason for great optimism for the future of energy efficiency in the Commonwealth. Thank you for all that you do, and we look forward to another great year working with you at the VAEEC in 2015.
The Fall Meeting of the Virginia Energy Efficiency Council packed the room on October 16, with a large audience representing a wide variety of perspectives, including business of all sizes, nonprofits, national associations, colleges and school districts, and local governments and state agencies. The biannual gathering was held at the Science Museum of Virginia in Richmond, arranged to coincide with Governor McAuliffe’s signing ceremony for Executive Order 31, which is aimed at reducing energy consumption in state government.
It was a full, timely agenda, and we have uploaded several of the speakers’ presentations to our website (you can find them on our Resources page). A few highlights:
• The featured topic was the newly-released Virginia Energy Plan; VAEEC Chair Cynthia Adams detailed the many positive sections related to energy efficiency (Her presentation is available online., and Al Christopher, Director of the Division of Energy at the Virginia Department of Mines, Minerals, and Energy, provided valuable insight into the process.
• Jeff Soplop of EnergySavvy presented his company’s view of the important topic of Evaluation, Measurement and Verification (EM&V), focusing on the real-time quantification of energy efficiency. (His presentation is available online.)
• Ralph Joyce of Dominion Virginia Power (and VAEEC Governance Board Member) led our regular round-robin update of utilities’ energy efficiency programs.
• A number of reports were provided addressing VAEEC priorities and programs, including: VAEEC Governance Board Member Bill Greenleaf reported on efforts to introduce legislation on Property Assessed Clean Energy (PACE) financing (His presentation is available online.); Angela Navarro of the Southern Environmental Law Center described a new initiative reviewing cost-effectiveness testing for energy efficiency in Virginia; and attendees were given the opportunity to provide input as part of the Clean Energy Roadmap project that the VAEEC is working on for the U.S. Department of Energy.
There was one piece of council business as the membership elected a slate of three new Governance Board members to fill open seats. The VAEEC is pleased to welcome the leadership of: Harry Godfrey of Opower; John Morrill, energy manager for Arlington County; and Saifur Rahman, director of the Advanced Research Institute at Virginia Tech. You can read more about these new Board members here.
We also send along our thanks to the three departing Board members who have been instrumental in establishing the VAEEC: Jim Kapsis of Opower; Kevin Martin of North Carolina State University; and Steve Walz of the Metropolitan Washington Council of Governments.
We greatly appreciate the many individuals who attended the Fall Meeting, including those who traveled to Richmond from across the state. A special thank you to Trane for sponsoring the Fall Meeting, which once again served as an exceptional venue for sharing information and insights, and making new connections.
— Ken Rosenfeld, Executive Director
October 20, 2014 — Virginia Governor Terry McAuliffe last week issued Executive Order 31 to reduce energy consumption in state government, saying “Reducing energy consumption in state government will save taxpayers money, strengthen our energy efficiency industry and decrease Virginia’s greenhouse gas emissions. It will also set an example for businesses and families of steps that we can all take to make Virginia the most energy efficient state in the nation.”
Jason Hartke of the US Green Building Council (L) and Ken Rosenfeld of VAEEC (R) congratulate Hayes Framme on his appointment as Chief Energy Efficiency Officer for the Commonwealth of Virginia
As part of the executive order, the Governor appointed Hayes Framme as Chief Energy Efficiency Officer, possibly the first state-level position of its kind in the country. Mr Framme has been serving as the administration’s Advisor for Infrastructure and Development and oversaw key aspects of the development of the recently-released Virginia Energy Plan.
Statement of Ken Rosenfeld, VAEEC Executive Director
“The Virginia Energy Efficiency Council would like to thank Governor McAuliffe for creating a Chief Energy Efficiency Officer position within his administration and to congratulate Hayes Framme on his appointment to this office.
“This new position underscores the Commonwealth’s commitment to energy efficiency as a cornerstone of the 2014 Virginia Energy Plan. The state government can save millions of dollars by embracing energy efficiency in its own operations, and it is now poised to lead by example as it embarks on efforts to advance energy efficiency among homeowners and businesses.
“We welcome Mr. Framme as Chief Energy Efficiency Officer as an experienced leader who understands the tremendous potential of energy efficiency as a cost-effective resource and as an engine for economic development.
“The VAEEC looks forward to working with Mr. Framme and the administration to achieve Virginia’s energy goals. With the introduction of the new Virginia Energy Plan, Executive Order 31, and Mr. Framme’s appointment, there’s reason for great optimism for the future of energy efficiency in the Commonwealth.”
October 14, 2014 — Governor McAuliffe officially unveiled his Virginia Energy Plan at an event in Richmond today co-hosted by the Virginia Chamber of Commerce and Virginia League of Conservation Voters. Cynthia Adams, Executive Director of the Local Energy Alliance Program and Chair of the Virginia Energy Efficiency Council, was a panelist at the event. Her remarks are below.
Read the VAEEC’s press release on the Plan or download the full Plan.
http://dmme.virginia.gov/DE/2014_VirginiaEnergyPlan2.shtml
“Good morning everyone, and a special thank you to the administration for inviting me to participate on this panel. As Chair of the Virginia Energy Efficiency Council, I will tell you that a real conversation on Virginia’s energy portfolio that includes unsung heroes like energy efficiency has been a long time coming in our state.
The mission of the nonprofit I run – the Local Energy Alliance Program or LEAP based in Charlottesville — is to lead the effort to retrofit buildings with energy efficient and renewable technologies. At LEAP we like to say we’re building a virtual power plant of the present that produces negawatts instead of megawatts. Our power plant isn’t subject to a slew of environmental or statutory regulations, so we have already begun constructing it.
And our power plant is creating jobs right now – jobs today, jobs tomorrow, and jobs next week. Energy efficiency’s power plant workers are your neighbors – they are the contractors that air seal buildings and add insulation. They replace aging equipment, and install better lighting. These power plant workers correct ventilation issues that exacerbate allergies and asthma. And they make our homes more affordable, they lower operating costs for businesses, and protect tax payers from paying for energy wasted in government buildings.
Virginia is a capacity short state, which simply put, means our supply has not kept up with our demand. As a result, utilities are tasked with building more power plants because they have to – we need to keep the lights on. Our population is growing, we continue to construct more buildings, and the number of gadgets we put into these buildings is also increasing – the new power needed has to come from somewhere.
A quick physics refresher for those of us who are decades out of elementary school: coal fired power plants implement four energy conversions in order to generate an electron for the grid, and then we have the line losses that come from stepping up and down the amperage of that current flow. By the time the cfl lights up your dining room, only 5% of the original energy content from the hunk of coal is in use. So a little bit of energy saved at home makes a big difference in terms of the amount of energy that goes into the system.
Energy efficiency is in fact the original distributed energy resource when you frame the discussion from a capacity perspective. How do we create energy efficiency as a commodity, as a supply-side resource – and what does that mean really? If we know (and we do) that our need for energy is increasing, that we must build new plants in order to meet the demands of tomorrow, then energy efficiency is just another way to meet that demand. If you need less, then you build less.
Many of us here may be familiar with the multitude of benefits that come from energy efficiency, but let’s take a moment to reiterate them. Energy efficiency:
– Conserves finite resources and saves money on building power plants
– Makes our buildings more durable
– Improves comfort, quality of life, and worker productivity
– Increases our energy security
– Spurs local economic development
– Creates or maintains jobs
There are a multitude of reasons why promoting and implementing energy efficiency is in the public’s and our own personal best interests. We have study after study that has given us statistic after statistic on the economic benefits, on the business case for energy efficiency as a resource and as a means to grow jobs and save money.
Here are a couple of notable statistics from the American Council for an Energy Efficient Economy’s Energy Efficiency and the Economic Opportunity Fact Sheet: for every $1M spent in building efficiency improvements, 20 jobs are supported – this is in contrast to only 17 jobs supported by investing into the economy as a whole. And for every $1M in avoided consumer energy costs, another 17 jobs are supported. This is in contrast to only 10 jobs supported through utility generation and transmission.
Most public buildings spend 20-30% more on energy than necessary; these expenses could be “recovered” through energy upgrades at no additional cost to tax payers through work that pays for itself. It is estimated that there are over $1 billion in self-paying energy efficiency projects in public buildings alone, which would be a huge boon to the Commonwealth’s economy – creating jobs, and catalyzing workforce development.
In Virginia’s residential building sector we have roughly 1.5M homes retrofit ready homes – that is homes that are owner-occupied and built prior to 1970 (before we had insulation standards in code). A 2% market penetration of these 1.5M homes equates to roughly 30,000 upgrades annually. If the average retrofit costs $5000 and produces 15% or more in energy savings, we’re talking about leveraging $150M in private capital. And, given the job conversion factors I spoke of earlier, the Commonwealth would support an additional 3200 jobs.
State organizations like the Virginia Energy Efficiency Council will tell you that energy efficiency is important for the business case it presents. The VAEEC has completed two industry census reports on energy efficiency businesses to document the value they bring to the Commonwealth. And we look forward to the appointment of the Governor’s Energy Efficiency Board to develop a strategy on meeting our state 10% energy efficiency goal by 2020. I invite us all to remember that Virginia is a net importer of energy. Ultimately energy efficiency is about keeping Virginia dollars in Virginia, instead of sending them out of state to support someone else’s investment.
Virginia Energy Efficiency Council Applauds Emphasis on Efficiency and Conservation in Virginia Energy Plan
October 1, Richmond — The Virginia Energy Efficiency Council (VAEEC) applauds Gov. Terry McAuliffe’s Virginia Energy Plan, released on October 1. As the Governors says in his opening letter, “the cleanest and cheapest energy is the energy that is not consumed,” underscoring the central role energy efficiency will play in the Commonwealth’s energy future.
The plan is intended to provide a strategic vision for energy policy in Virginia, providing a comprehensive view of current assets and future opportunities.
“The VAEEC is pleased that the new plan identifies energy efficiency as a leading solution to many of the challenges we face in Virginia,” said Ken Rosenfeld, executive director of the VAEEC. “This is great news as we look toward the future and plan to meet the energy needs of the Commonwealth. We thank Gov. McAuliffe, the Department of Mines, Minerals, and Energy (DMME), and the Virginia Energy Council (VEC) for identifying energy efficiency as the most cost effective energy resource and as an engine for economic development.”
Energy efficiency and conservation are highlighted as a separate section in the plan, which includes the following statements:
• “Energy efficiency and conservation offer Virginians the most cost-effective and most readily deployable method to manage the Commonwealth’s energy future.”
• “The efficient use of energy results in decreased use of resources, less air pollution, and therefore, cost savings.”
The related recommendation in the plan is to “Make Virginia a Leader in Energy Efficiency to Reduce Consumption and Spur Economic Growth.” Five associated initiatives are identified:
• Establish a Virginia Board on Energy Efficiency that will develop a strategic plan to achieve the voluntary state goal of reducing energy consumption by 10% by 2020.
• Aggressively implement energy efficiency in state government.
• Develop a marketing, outreach and preliminary assistance program to engage local municipalities in Energy Performance Contracting (EPC).
• Create a central state facility energy data registry and dashboard to track energy consumption at all state agencies.
• Engage social entrepreneurs in exploring and implementing innovative models, such as pay for performance, in order to test new and innovative ways to cut energy bills and to finance energy efficiency upgrades in existing multi-family residential properties.
Many of the recommendations are consistent with input provided by the VAEEC during the public outreach portion of the plan’s development. The VAEEC recommended convening a group similar to the proposed Virginia Board on Energy Efficiency and recommended an expansion of performance contracting in government buildings. The VAEEC also called for energy efficiency to be recognized for the first time as a separate section in the plan, placing it on equal footing with other energy sources.
“This Energy Plan echoes the recommendations made by the VAEEC and provides momentum for achieving some real progress on energy efficiency in Virginia,” said Rosenfeld. “We look forward to working with the administration, policymakers, and all stakeholders to make these goals a reality. Our membership is poised to bring a wealth of experience and enthusiasm to meeting Virginia’s energy challenges.”
The VAEEC was tapped by the administration to present at each of the listening sessions convened across the state to gather input during development of the plan. The Chair of the VAEEC, Cynthia Adams, was appointed by the Governor to serve on the Virginia Energy Council, representing both the VAEEC and the nonprofit Local Energy Alliance Program (LEAP). The VEC provided feedback to DMME throughout the plan’s creation.
The Energy Plan, which will be formally presented at an event October 14, will be explored in detail as a featured agenda item at the VAEEC Fall membership meeting, which will be held two days later on October 16, 2:00pm, at the Science Museum of Virginia in Richmond. The meeting is open to everyone; click here to register.
The VAEEC is a broad coalition working to assess and support programs, innovation, best practices and policies that grow Virginia’s energy efficiency industry and to provide a forum for stakeholder interaction. The membership includes businesses of all sizes, utilities, nonprofits, universities and local governments.
