frank gorke director, division of energy efficiency frank.gorke@state.ma 617.626.7352

Creating A Greener Energy Future For the Commonwealth

Recent Developments in New England’s

Bedrock EE ProgramsRestructuring Roundtable, June 18th, 2010

Frank GorkeDirector, Division of Energy Efficiency

frank.gorke@state.ma.us617.626.7352

www.mass.gov/doer

Creating A Greener Energy Future For the Commonwealth

Clean Energy Activity

• Global Warming Solutions Act• Green Communities Act• IOU Energy Efficiency Programs• Utility Rate Decoupling• Renewable Portfolio Standard• Alternative Energy Portfolio Standard• Building Energy Codes• Green Communities Division• Zero Net Energy Buildings• Leading by Example• Regional Greenhouse Gas Initiative• MA Clean Energy Center• American Recovery and Reinvestment Act

Creating A Greener Energy Future For the Commonwealth

MA is #2

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Creating A Greener Energy Future For the Commonwealth

GCA Efficiency Program Vision

• Least cost procurement requirement on IOUs• Programs operated by IOUs and CLC• Three year plans• From fixed budget to entrepreneurial• Expanded role for CHP• Stakeholder involvement• SBC, RGGI, FCM, EERF funding sources

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Creating A Greener Energy Future For the Commonwealth

Nation-Leading Energy Efficiency Plans

• Energy Efficiency Advisory Council (EEAC) 25 public meetings Chaired by DOER Commissioner Phil Giudice 11 voting members

Business, industry and environmental groups, residential energy users, state environmental and economic development officials, the Attorney General

Program Administrators

• EEAC unanimously approved plans (10/09)• DPU approved plans (1/10)

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Creating A Greener Energy Future For the Commonwealth

Progress update: Two years out from the GCA

• Great goals, strong plans• Solid, open process• Building off the old programs – good and bad• Some great new approaches• Improving integration of programs and program

delivery• Ahead of the goals in some programs; behind in

others

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Creating A Greener Energy Future For the Commonwealth

Three-Year Plan: Benefits at a GlanceAbout 3x the annual savings over 2008Electric

• 2.4M Residential, Low Income, and Commercial participants over 3 years

• Investment of $1.7B over 3 years• 30,000 GWh savings over the lifetime of the measures• Efficiency represents 2.4% of sales in 2012

Gas• 920,000 Residential, Low Income and Commercial participants over

3 years• Investment of $483M over 3 years• 897M therms savings over the lifetime of the measures• Efficiency represents 1.15% of sales in 2012

Creating A Greener Energy Future For the Commonwealth8

Creating A Greener Energy Future For the Commonwealth9

Source: DOER

Efficiency plans Built on Experience

Generation

Efficiency

40 million MWh

60 million MWh

1991 2012

• Most ambitious plans in US

• 3 year Plans• $ 6 billion

savings from $2 billion investment

• 3X per capita CA’s 3 year plan

Creating A Greener Energy Future For the Commonwealth

Challenges: MA

• Reaching and motivating customers• Deeper savings• Financing and outside funding• Some program design issues• Doing all the hardest things• Settling at the appropriate level of regulatory and

stakeholder review

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Creating A Greener Energy Future For the Commonwealth11

Challenges: Global• Policy – Federal/State; working relationships; patchwork• Calculations

– Free Riders, Spill Over, Market transformation, Useful remaining life– Measurement and verification, end usage data, documented outcomes– TRC; Benefit/Cost

• Onerous well established regulatory processes– Appropriate incentives for achieving results; making a profit– Removing disincentives for achieving results– Assigning attributable causation

• Delivery– Capitalizing on diverse delivery models – free market approaches– Creating valuable jobs while changing delivery models

• Customer interest– Making people care about it when its not economically of interest– End user time frames, split incentives– Making efficiency easy for end users– Tailored to the vast variety of end users

• Funding

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Perceived Efficiency Panaceas• Decoupling• PACE• Economic self interest• Smart Grid, real time pricing• Technology breakthroughs• EERS/ White Tags• Competitive market solutions• Communication

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Two Invitational Global Priorities

1. Buildings – Codes stringent stretch ZNEB– Labeling: asset and operational

2. Appliances– Beyond minimum standards– One watt stand-by

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Closing Thoughts• Efficiency matters and will take work• New ideas are needed and existing approaches

are valuable – change is hard• Lots of work remains – leadership and

partnership needed• Success is highly likely – shared commitment

exists• Opportunity to be a showcase – reducing

energy waste while growing our economy