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 OVER VIEW OF PRES VIEW OF PRES ENTATION ENTATION • S S tates in NE have made great progress – much to do still 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 Insights for New Hampshire 1
HOW’ S HOW S NEW HAMPS NEW HAMPS HIRE DOING? HIRE DOING? • Putting the ACEEE S Putting the ACEEE S corecard in context 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
DECIPHERING THE ACEEE S DECIPHERING THE ACEEE S CORECARD 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 3
REGIONAL UPDATES REGIONAL UPDATES ON EE POLICY ON EE POLICY 4
EFFICIENCY POLICIES EFFICIENCY POLICIES ACROS ACROS S S NEW ENGLAND NEW ENGLAND State Policy Type Delivery Energy Savings Goals Connecticut All Cost Effective EE Utilities 1% annually Maine Maine All Cost Effective EE All Cost Effective EE Efficiency Maine Trust Efficiency Maine Trust S S et as part of Triennial et as part of Triennial Plan Massachusetts All Cost Effective EE Utilities 2.24% of electricity and 1.15% of natural gas sales annually by 2012 New Hampshire Funding Limit ed by Utilities In process Cap on S BC Rhode Island All Cost Effective EE Utilities S et as part of 3-Y ear plan l Vermont All Cost Effective EE Energy Efficiency 2%of sales annually Utility y 5
HOW S HOW S TATES TATES FUND EFFICIENCY FUND EFFICIENCY State Funding Mechanism Ratepayer Funding RGGI Auction Used to Capacity Market Supplement Efficiency Payments Budgets 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 S tatute sets at 80% IS O-New England Reconciliation Factor (EERF) Reconciliation Factor (EERF) ME S BC set at 0.5% of electric revenues and S tatutes set at 100% IS O-New England 3% of natural gas revenues NH S BC of 1.5 mills/ kWh – lowest in region Competitive Bidding IS O-New England Process 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 S tatutes set at 100% IS O-New England Efficiency Budget Natural gas programs are set by Vermont Gas S ystem rates y 6
S S TATE PER CAPITA S TATE PER CAPITA S PENDING, 2007-2010* PENDING, 2007 2010 VT VT MA NJ CT 2007 2008 2009 NY 2010 RI NH ME $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 *Figures are compiled from the total state investment in energy efficiency divided by the state’s estimated 2009 population. Sources: Energy *Fi il d f h l i i ffi i di id d b h ’ i d 2009 l i S E 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. 7
COMPLEMENTAR COMPLEMENTAR Y POLICIES Y POLICIES “ Help lock in” savings and foster progress on energy efficient “ H l l k i ” i d f ffi i 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 overall energy and environmental performance for gy p new and existing buildings. 8
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 9
THE BIG PICTURE AND S THE BIG PICTURE, AND S TEPS TEPS FOR NH FOR NH • S S tates are moving forward with EE, challenges ahead 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 messages that citations sends to policymakers and the public 10
THE BIG PICTURE AND S THE BIG PICTURE, AND S TEPS TEPS FOR NH 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 – Proud tradition of frugality lit P d t diti f f • 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 • It invests New Hampshire’s dollars in New Hampshire, and not in foreign energy sources 11
THE BIG PICTURE AND S THE BIG PICTURE, AND S TEPS TEPS FOR NH FOR NH It’s not ‘ red’ or ‘ blue’ It’s not ‘ red’ or ‘ blue’ … It’s ‘ green’ It s green 12
THANK YOU THANK YOU JIM O’ REILL JIM O REILL Y 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
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