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Frank Gorke Director, Division of Energy Efficiency frank.gorke@state.ma 617.626.7352

Recent Developments in New England’s Bedrock EE Programs Restructuring Roundtable, June 18 th , 2010. Frank Gorke Director, Division of Energy Efficiency frank.gorke@state.ma.us 617.626.7352 www.mass.gov/doer. Clean Energy Activity. Global Warming Solutions Act Green Communities Act

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Frank Gorke Director, Division of Energy Efficiency frank.gorke@state.ma 617.626.7352

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  1. Recent Developments in New England’s Bedrock EE ProgramsRestructuring Roundtable, June 18th, 2010 Frank Gorke Director, Division of Energy Efficiency frank.gorke@state.ma.us 617.626.7352 www.mass.gov/doer

  2. 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

  3. MA is #2

  4. 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

  5. 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)

  6. 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

  7. Three-Year Plan: Benefits at a Glance About 3x the annual savings over 2008 Electric • 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

  8. Efficiency plans Built on Experience • Most ambitious plans in US • 3 year Plans • $ 6 billion savings from $2 billion investment • 3X per capita CA’s 3 year plan 60 million MWh Efficiency 40 million MWh Generation 1991 2012 Source: DOER

  9. 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

  10. 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

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

  12. Two Invitational Global Priorities • Buildings • Codes  stringent  stretch  ZNEB • Labeling: asset and operational • Appliances • Beyond minimum standards • One watt stand-by

  13. 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

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