Utility Partnerships Related to Building Code Compliance

Isaac Elnecave, Senior Policy Manager - MEEA Carolyn Sarno, Senior - NEEP December 7, 2011

Agenda
Purpose for Utility / Code Compliance Partnerships Issues to Address How Do Codes Differ from Other EE Programs States Work California Minnesota Rhode Island Massachusetts Others Resources

Purpose of Code Compliance Partnerships

Improve Overall Statewide Compliance with Energy Code Meet the ARRA Requirement of 90% Compliance by 2017 Assist Utilities in Meeting Energy Efficiency Portfolio Standard Requirements

Rationale For Collaboration

Code compliance levels remain relatively low due to the fact that:
Main responsibility of Code Officials has been / is life-safety issues Increasing complexity of energy codes Lack of resources/training to implement the above

Increasing requirements for Energy Efficiency Portfolio Standards (EEPS) require finding non-traditional ways to generate savings from EE programs. Utilities and other entities have experience with design and construction of energy efficient buildings. Utilities can provide expertise/resources/assistance to aid building practitioners improve compliance with the energy code.

Issue Specific to Utilities

Utilities May Hesitate to Support Improving the Stringency of Energy Codes because:
It May Reduce the Overall Available Efficiency Potential a Utility Can Access to Comply with its Efficiency Goals by Potentially Reducing the Amount of Energy Savings Utilities can Claim Uncertainty as to Whether Utilities can Gain EE Claimed Savings Credit from Code Programs Codes Police

How Do Code Compliance Programs Differ From Other EE Programs or Incentives?

Codes are Adopted and Generally Enforced By Governmental Agencies Multiple Organizations (Stakeholders) are Interested and Willing to Participate Codes Affect all New Buildings/Major Renovations Customers Cannot Choose to Participate Utility Actions Affect Adoption and Compliance but Not Consumer Behavior

Codes Energy Savings Requires Collaboration

Collaboration on Increasing Code Compliance is a Possible Solution Large Potential Savings Left Behind Due to Poor Compliance (Typically Levels are 50 to 70%)

Steps in Establishing a Code Compliance EE Program

Confirm State Statutory and Regulatory Requirements Understand All the Various Stakeholders Involved Focus First on Ensuring Strong Code Compliance, Followed by Exploration Of Stretch Codes Work Out Appropriate Activities (Actions that Will Result in Measurable Energy Savings) Develop Methodology for Measuring Energy Savings (Pay Attention to Difference Between Natural Gas and Electricity as They May Affect Different Groups) Determine Attribution Rates (not all Energy Savings Due to Increased Compliance will Come Directly From Utility Actions) Allocation (Multiple Utilities Within State)

Types of Energy Savings

Residential Code Compliance Work Mostly Saves on HVAC Operation (Natural Gas in Cold Climates) Commercial Code Compliance Gains Savings for Both: Electricity through Commercial Lighting and Natural Gas through Envelope/HVAC Improvements

Who is Paving the Way?

Some States with Established or Developing Partnerships:
California Minnesota Rhode Island Image Courtesy of peureport-blogspot Massachusetts Other StatesIowa, Illinois, Ohio.

California State/Utility Partnership

Image Courtesy of NREL

CA Program Implementation Plan (PIP) Statewide Codes and Standards; 2009-2011 Compliance Enhancement Subprogram:

California Compliance Enhancement

Near Term 2009-2011

Research of High Priority Solutions (also in Mid & Long Term Plans) Increase Training and Support for Local Code Officials Investigate Regulatory Tools Such as Licensing and Registration Enforcement Evaluate Proposed Changes to Code and Compliance Approaches Work with Local Governments to Improve Code Compliance, Adopt Above Code Ordinances, Provide Training/Education

CA Compliance Enhancement (Cont)

Mid-Term 2012-2015
Pursue involvement of HERS Raters Work with Trade Associations to Improve Self-Policing Streamlining Permit Process

Long Term 2016-2020

Investigate Sticks and Carrots with Monetary Incentives/Penalties Investigate Codes that Regulate the Operations of Buildings

MN Energy Impact of Code Compliance

Image Courtesy of AllMinnesota.com

Minnesota
Minnesotas Next Generation Energy Act of 2007 requires 1.5% annual energy savings Minnesotas Office of Energy Security contracted Minnesota Environmental Initiative to facilitate stakeholder process for nontraditional EE programs Created list of recommendations to the state Utility Infrastructure Low-Income Conservation Behavioral Codes and Standards Full Recommendations at http://www.environmental-initiative.org/projects/past-projects

MN Recommendations
Establish Baseline using PNNL Compliance Evaluation Protocol Develop Methodology for Converting Code Compliance Results into Energy Use Establish Utility Codes Group Based on Washington State Model Form Stakeholder Group to Work Through Attribution Issue

MN Energy Impact of Code Compliance

Quantify new and renovated buildings across the state
How many Building type Building size

Calculate the anticipated energy use of that population of buildings

Code level attributes Attributes found in the survey Non-compliant attributes found in the survey

Eleccode Gascode

Elecsurvey Elecnon-comp. Gassurvey Gasnon-comp.

Rhode Island
Rhode Island is Advancing State Energy Codes through a Collaboration of:
RI Building Code Commission - State National Grid Local Utility NEEP Regional Energy Efficiency Advocate
Image Courtesy of Travel Globe Pictures

RI Program Planning Stages

Monthly Strategic Planning Meetings since Nov

2010
Trainings:
Conducted residential and commercial code trainings in

early 2011
Identified advanced level trainings with target groups

Initiated code compliance baseline studies

Residential study funded by National Grid Commercial study co-funded and begun by

State of RI & National Grid

RI Outcomes Expected
Codes and Standards (C&S) Initiative
Focus is both the Residential and C&I Sectors

Collaborators
State - Building Code Commission & Office of Energy Resources Utility - National Grid Non-Profit - NEEP

Goals - Improve Compliance with Existing Building Energy Codes Specific Actions - Facilitating / Training / Education Other Collaborators
Professional Associations and NGOs National Code Development Organizations DOEs Building Energy Codes Program

Rhode Island Program Planning Stages (Future)

Late 2011:
Submit Proposal to the State for Approval Includes

Attribution Methodology
2012:
Focus on Completing Research & Baseline Studies Refine Program Initiatives Based on State Feedback: Intent,

Goals, Timelines, Nature of Energy Savings

2013:
Launch Code/Standards Program

Massachusetts
Currently no Mechanism for Rate Payer Efficiency Program to Claim Savings Current Effort Focuses on Codesw 2009 Res. New Construction Metric NMR Report Code Enhancement; Compliance or Both Attribution Model?

Massachusetts
Public Administrators
Develop Activity Plans Tracking Mechanisms Establish Baseline Definitions and Potential Impacts

Must Engage Regulators DPU Commissioner on Board

Other States
Illinois: Utilities Provide Funding for Training on 2012 IECC through State Energy Agency Ohio: Includes Codes Compliance in its Submitted EE Plan to PUC: Looking for 100% Attribution Iowa: Utilities Fund Training for HERS Raters and Other Officials. Established Builders Option Program and Advanced BOP

NEEP Up to This Point

Regulatory Language (MA, CT, VT, NY) NEEP EM&V Forum Delved into Issue at 9/10/10 Forum
Looked at CA and AZ Examples; Reviewed Work to Date in MA; Gave Perspective of Other States (DC, NY, VT, CT) Teed Up Challenges/Opportunities/Needs Result: Forum Research and Evaluation Project Proposal

 Coordinate with PAs on Potential Activities Project Summary Research

NEEP Research/Evaluation Project

Overview of Current Policy and Practices in Key States Catalog Activities

Develop Guidance on Measurement and Evaluation Approaches Estimation of Savings from Codes and Standards Provide Regulatory Support Make Complex Info Accessible

Take Away Issues

Stakeholders May/May Not Recognize Role for EE Codes Programs Pay Attention to Raising Baseline (2012 IECC?) Defining Activities (Underway in MA) Attribution (Consideration of Existing Models; Look at New Models Especially from CA) Evaluation Regulatory Approval Requires Clear Justification Dont Duplicate Efforts (Although Different Regions will Engender their Own Issues)

Issues to Consider
Programs Must Pass Regulatory Scrutiny
Cost Effectiveness Utility Incentives and Penalties Approved Attribution Method

Examples to Draw From

California Arizona Washington

Possible Models
Prove it and Claim It: California Support Achievement of Code Savings; Get Part Credit: Arizona Project What Will Be There; Work Together to Make it Happen: Northwest Other: Combination of Different Approaches

Needed Work
Many Details Still Remain to be Worked Out Work is Ongoing to:
Clarify and Expand Types of Utility Activities (Especially Beyond Training) Establish Measurement and Attribution Protocols Develop Strategies for Allocation Clarify/Address Statutory and Regulatory Hurdles Outreach to Diverse Stakeholders to Ensure Support

Discussion
Initial Thoughts Missed Issues Which Stakeholders Should Be Part of This What are the Next Steps

Resources
Codes Compliance Program Case Studies References are Available for Further Study:
California Public Utilities Commission (CPUE) Energy Efficiency Plan
www.cpuc.ca.gov/PUC/energy/Energy+Efficiency

Minnesota Environmental Initiative (MEI) final report:

www.environmental-initiative.org/images/files/ 1_5EESolutionsFinalReportwithoutAppe ndices.pdf

Massachusetts
www.masssave.com

Contact Information
Isaac Elnecave
Sr. Policy Manager ielnecave@mwalliance.org

Midwest Energy Efficiency Alliance

(312) 784-7253

Special Assistance was Received from National Grid, NEEP, PG&E and The Weidt Group to Compile Each States Information. Please Contact MEEA for Additional Information on These Programs