2012 Fall KMSA Meeting Thursday, October 18 Breakout #4.1: An Update on the SEE KY Project Samantha Williams, Midwest En

1. 2012 Fall KMSA Meeting Thursday, October 18 Breakout #4.1: An Update on the SEE KY Project Samantha Williams, Midwest Energy Efficiency Alliance

2. SEE KY Project Overview • MEEA is under contract with KY DEDI. 3 year project to help coordinate and improve Kentucky’s energy efficiency efforts. • This project is a step toward achieving the Governor’s energy efficiency goals, and to position Kentucky as a leader in efficiency programs and services. • Phase One • 10 months of stakeholder meetings, three-meeting statewide collaborative meetings concluded in July of 2012. Last year’s KMSA presentation was just prior to the three-meeting series. • Participants represented utility, industry, commercial, academic, housing, non-profit, government, legislative, regulatory, and business/trade associations – including folks here today. • Action Items were discussed and further refined, resulting from 10 months of stakeholder feedback • Phase Two • MEEA and DEDI now poised to synthesize stakeholder recommendations into an Action Plan • Tasks and a timeline for completing the goals of this project, implementation details were possible • Plan will be released for stakeholder review this fall, implementation is ongoing

3. The Action Plan A few key points about the SEE KY project and Action Plan: This is a collaborative process involving the many diverse opinions of our stakeholders, thus we have to bridge interests and make recs that are the most economically and politically viable for Kentucky We’ve also taken a comprehensive approach, including both jurisdictional and non-jurisdictional utilities in these discussions Finally, we have taken a pragmatic approach, focusing on items that have the potential to be financed and implemented

4. I. APPLICABLE TO ALL SECTORS • Develop voluntary reporting mechanism to ensure transparency of utility-run energy efficiency program performance. • Create Utility Peer Exchange for both jurisdictional and non-jurisdictional electric utilities to share information, experiences and best practices. • Initiate discussion on issues related to utility rate structure (i.e., Owen Electric’s approach)

5. I. APPLICABLE TO ALL SECTORS(Cont.) • Provide additional opportunities for stakeholders to access information about tax incentives, grants or other funding sources that can be used to finance energy efficiency improvements. • Increase energy efficiency education and training programs for each consumer sector. • EEC should offer to provide support in the development of municipal utility programs (e.g., “Quick Start” programs).

6. II. RESIDENTIAL EFFICIENCY • Improve residential housing stock via energy efficiency programs. • Explore enhanced use of on-bill financing for all consumers, in all regions of Kentucky. • Create incentive mechanism for landlords of residential rental property to provide energy efficiency services, invest in energy efficiency building upgrades. • Develop a pilot for pre-1976 manufactured housing replacement program.

7. II. RESIDENTIAL EFFICIENCY(Cont.) • Improve new residential housing via uniform housing energy code enforcement (beyond recent efforts for state-wide HVAC inspection). • Evaluate resources for improved training and inspection of manufactured housing installation. • Expand and enhance Kentucky Home Performance Program. • Expand existing residential efficiency incentives in KRS 141.435 through 141.437 (House Bill 2, 2008 Regular Session) for home builders, landlords, and homeowners. • Explore how Federal Emergency Management Agency funds provided for home rebuilding or replacement in the wake of natural disasters could require new structures to be built better than code (e.g. highest national model code or ENERGY STAR). • Seek Low Income Home Energy Assistance Program reform.

8. III. COMMERCIAL EFFICIENCY ACTION ITEMS • Establish revolving loan fund, with zero to low interest, linked to energy efficiency upgrades for commercial buildings. • Create incentive mechanism for owners of commercial rental property to provide energy efficiency services, invest in energy efficiency building upgrades.

9. III. COMMERCIAL EFFICIENCY ACTION ITEMS (Cont.) • Explore opportunities to recapitalize the Kentucky Green Bank to increase funding that supports state agency energy savings performance contracting. • Kentucky State Government will continue to exhibit energy efficiency leadership. • Improve Kentucky’s commercial building stock via implementation, support and uniform enforcement of updated commercial building energy codes. • Amend KRS 141.435 through 141.437 (House Bill 2, 2008 Regular Session) to expand existing energy efficiency tax incentive for commercial users.

10. IV. INDUSTRIAL EFFICIENCY ACTION ITEMS • Convene advisory group to review options governing industrial customer opt-out from DSM Statute and make recommendations. • Establish revolving loan fund with zero to low interest linked to energy efficiency upgrades. • Increase financial incentives for industrial energy consumers, i.e. amending existing tax incentives (Kentucky Reinvestment Act), linked to energy efficiency upgrades and performance.

11. Next StepsGeneral Q&A

12. Contact Information MEEA Samantha Williams, swilliams@mwalliance.org DEDI Greg Guess, greg.guess@ky.gov Lee Colten, lee.colten@ky.gov