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 5/20/20 2
ESA Post-2020 Goal Setting Guidance • Depth of Energy Savings Goal: D etermine resource and non-resource savings at household level Decision asked IOUs to set own • Participation Goals: No statute requirements like previous 2020 goal ESA goals and • Portfolio Energy Savings Goal : Influenced but not set metrics for the by Potential and Goals study next cycle. • Additional Metrics : To be proposed by IOUs IOU Applications are consolidated in proceeding A.19-11-003. Next: Guiding Principles 5/20/20 3
Guiding Principles Customer- Par arity Equity St Stabilization Quality Op Optimization Cen entric Next: Proposed Goals 5/20/20 4
Proposed Goals HOUSEHOLD ENERGY SAVINGS PROGRAM COORDINATION Goal #1 Goal #2 Goal #3 Each IOU's average treated household energy Maximize ESA Build a universal low- savings across the ESA program increases household income customer at least 5 percent year over year. participation and application system coordination in and capabilities for other clean sharing application and energy programs. energy usage information with program partners. 5/20/20 5 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. Next: EE Tiers 5/20/20 6
Energy Efficiency Tiers Tier 1 - Tier 2 - Tier 3 - Basic Strategic Advanced Expected Efficiency 5% 5% to 15% 15% to 50% Savings Description The mix of ESA measures Focus on equipment and Deep energy retrofits providing currently proposed in the appliance replacements equipment, appliance applications. and load shifting replacement, load shifting technologies. technologies, and building envelope treatment. Eligibility New ESA participants New or previous ESA New or previous participants ESA participants Next: Savings Ramp 5/20/20 7
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 5/20/20 8
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 Next: Advanced 5/20/20 9
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 Next: Multifamily 5/20/20 10
Sample EE Measures For multifamily properties STRATEGIC ADVANCED Save 5% to 15% Of Energy Use Save 15% to 50% Of Energy Use Additional measures unique to MF: Additional measures unique to MF: Common Area Measures, including central • TBD 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) Next: Goals 2 and 3 5/20/20 11
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. Next: Customer Profiles 5/20/20 12
Customer Profiles and Segmentation 5/20/20 13
Connecting All Three Goals Next: Reasons 5/20/20 14
Reasons for Proposed Goals ESA can serve customers better to overcome existing barriers. PREVIOUSLY LOW ENERGY BURDEN OLDER HOUSING HIGH PER HOUSEHOLD MORE LIKELY IN CONSTRUCTION ESA ENERGY NEED OF REPAIR COSTS SAVINGS Next: Barriers 5/20/20 15
BARRIERS Energy Burden Low Energy Savings from ESA Energy burden is higher for CARE Between 2015 to 2017 average electric participants than for non-participants savings per household was less than (LINA, 2019). 5 percent (for some utilities less than 1 percent), and average gas savings were Energy burden is highest for low-income 2 percent or less. households in California (ACEEE, 2016). Focus on the low hanging fruit - nearly Renters in California are more likely to half of all distributed ESA measures from spend 30%+ of their income on housing 2016 to 2018 were torchieres or light costs (2017 American Community bulbs. Survey). 5/20/20 16
BARRIERS High Construction Costs Low-income households are unlikely to Older Housing be able to afford customized retrofits on their own. California homes were mostly built before 2000; 86.5% of homes were built The Terner Center identified 2000 (American Community Survey that construction costs rose by 12.6% in 2017). 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. 5/20/20 17 Next: Commission Priorities
Reasons for Proposed Goals ESA can effectively connect with Commission priorities: Environmental and Health Benefits and Greenhouse gas Social Justice (ESJ) Safety (GHG) reductions Action Plan Improvements Peak Demand Connect to and learn Wildfire Resiliency Reduction from CPUC Programs Next: ESJ Plan 5/20/20 18
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. Next: GHG 5/20/20 19
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) Next: Health and Safety 5/20/20 20
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). Next: Coordination 5/20/20 21
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). Next: Peak Demand 5/20/20 22
Peak Demand Reduction • 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). Next: Resiliency 5/20/20 23
Wildfire 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). Next: Examples 5/20/20 24
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