CEEP Staff's blog

Is your community one of the dozens implementing American Reinvestment and Recovery Act (ARRA) funded smart grid initiatives? Public Power service territories have been awarded nearly $700 million in funding to support smart grid initiatives through the Smart Grid Implementation and Demonstration Programs (see grant recipients); and still more are pursuing smart-grid projects through other buckets of ARRA funds such as the new loan authority for Bonneville Power and Western Area Power Authority for transmission projects or Energy Efficiency and Conservation Block Grants (a complete recap of stimulus funding opportunities for Smart Grid is available in Smart Grid News' Stimulus Tool Kit).

To assist implementers and other Smart Grid stakeholders, the Department of Energy (DOE) has launched the beta version of a new Smart Grid Information Clearinghouse (SGIC), developed by Virginia Tech. The SGIC provides information on technologies, standards, rules, use cases, training and other best practices for smart grid technologies. Another goal of the Web site is to collect comments and suggestions from the smart grid community and the public about application, research and development of smart grid technologies. The fully operational site is anticipated this fall.

This new resource compliments SmartGrid.gov, an information portal for tracking federally funded Smart Grid projects. Here, stakeholders including consumers, utilities, technology providers, regulators, environmental groups and policy makers, can also order free copies of tailored reference guides to learn more about Smart Grid basics. Many utilities have found these guides useful in helping them to craft messaging to communicate with their own constituents about Smart Grid.

The American Public Power Association (APPA) is also expanding its Smart Grid resources. Currently, APPA is working to develop a comprehensive picture of the public power industry's efforts in this domain and is seeking your feedback on a survey to determine how public power utilities are using smart grid technologies. Responses to the survey are due on Friday, July 30. These will help to shape the agenda for a Smart Grid Summit being planned for later this year.

CEEP is seeking to add case studies about aspects of Smart Grid program planning and implementation, based on your experiences. If you have a story to share, please contact us!

Is your utility or municipality investigating LED street and area lighting products or conducting a demonstration project or full scale retrofit?

Popular before ARRA funding opportunities, many more municipalities are now pursuing the installation of LED street lights with their Energy Efficiency and Conservation Block Grant funds.

Because these applications of LED lighting are relatively new and many of these projects are taking place simultaneously, the Department of Energy (DOE) formed the Municipal Solid-State Street Lighting Consortium earlier this year to accelerate the learning curve and help cities and utilities take advantage of successful strategies/avoid duplication of lessons learned by others. The Municipal Consortium will collect, analyze, and share technical information and the experiences of its members, so that a larger body of knowledge related to this topic is accessible to others pursuing these initiatives.

Membership in the Consortium is open to municipalities, utilities, and energy efficiency organizations, with participation at various levels from other interested parties.

• Primary members include municipalities, power providers, building owners, and other decisionmakers who invest in street and area lighting.
• Advisory members are solicited from organizations with a known history for promoting quality lighting and energy efficiency (e.g. educational institutions, environmental monitoring agencies, etc.) and will be selected to fill specific Consortium needs.
• Guests include individual employees of organizations that meet the requirements for membership but whose organizations have chosen not to join.

To date, the Consortium has received over 400 applications for membership with 229 coming from utilities/municipalities. Information on joining is available here.

The Consortium will disseminate best practices and lessons learned through national and regional meetings, webcasts, web-based discussion forums, and other means. The first webcast, on May 6, 2010, presented information on the Consortium's purpose, first steps, and opportunities to participate. A second webcast on July 20, 2010 (replay available soon) provided an update on Consortium activities and perspectives from members who are in the midst of implementing LED street lighting evaluations.

The group is now planning for the first of what it expects will be an annual Municipal Solid-State Conference. It will be held on September 29, 2010 from 2:00pm to 5:00pm, after the Street and Area Lighting Conference at the Hyatt Regency Huntington Beach Hotel. This event is open to all, except manufacturers, vendors, distributors, and their representatives at this time. Seating is limited with priority reservations going to municipalities and utilities. Those interested in attending should contact Vicki Marsten at Seattle City Light as soon as possible (email: MSSLC@Seattle.Gov; phone: (206) 386-1783).

More information about Solid State Lighting in general can be found on DOE's SSL resource pages.

As record breaking temperatures raise energy bills for us who live here in DC this month, energy bills of another type are the focus on the Hill. In the next few weeks, before the August recess, policymakers and the Obama administration are expected to address energy and climate legislation.

The Alliance to Save Energy prepared the following rundown on several proposals:

• The American Clean Energy Leadership Act (S. 1462), which won bipartisan support in the Senate Energy Committee last year and contains critical energy efficiency provisions including building codes, appliance standards, research and development, and building retrofit programs.
• The Outer Continental Shelf Reform Act, which passed unanimously out of the Senate Energy Committee, reforms federal oversight of offshore drilling in the wake of the massive Deepwater Horizon spill.
• The Practical Energy and Climate Plan Act (S. 3464), introduced by Senators Dick Lugar (R-IN), Lisa Murkowski (R-AK), and Lindsey Graham (R-SC), which includes a standard for electricity from renewables, nuclear, and clean coal as well as efficiency; vehicle fuel economy standards; building codes; appliance standards; and other efficiency provisions.
• A to-be-determined energy tax package, that could draw from earlier tax incentive proposals from Senators Jeff Bingaman (D-NM) and Olympia Snowe (R-ME).
• A Utility-Only Cap, which has been a back-up plan in the Senate but has received a lot of recent attention, with the leadership of Senators Bingaman and Snowe. This pared down cap-and-trade proposal would remove transportation fuels and industrial emissions from a cap similar to the American Power Act.
• The American Power Act, the long-awaited bill introduced by Senators John Kerry (D-MA) and Joe Lieberman (I-CT) in May, which looks similar to the House-passed ACES, without many of the energy provisions already included in ACELA, and with additional incentives for natural gas, nuclear power, coal, and oil drilling.
• The CLEAR Act (S. 2877), which was introduced by Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) in November, and is gaining some support due to its simplicity. Notably, the cap would return 75 percent of allowance revenues directly to consumers, who, through the Energy Efficiency Consumer Loan Program could use the dividends to finance energy efficiency improvements in their homes.

Additional Bills to lookout for
The Alliance also rounded up the following energy efficiency bills under consideration:

• The e-Know Act (H.R. 4860), which would give homeowners more knowledge of their home energy use.
• The Supply Star Act (S. 3396), which would encourage businesses to invest in energy efficiency up and down their supply chain.
• The Streamlining Energy Efficiency for Schools Act of 2010 (S. 3364), which would provide technical assistance for schools to explore existing federal programs and financing options that would help make schools more energy-efficient.

• The Home Star (S. 3434) proposal for residential building retrofits and the complementary Building Star (S. 3079) proposal, which could become part of a broader energy bill.
• An extension of the New Homes Tax Credit as part of a tax extenders package that has become stymied in the Senate over fiscal concerns.
• FY 2011 appropriations, which could threaten a budget cut for energy efficiency and renewable energy, but are likely to be postponed at least until after the election.

• PACE, which supports energy efficiency and renewable energy projects by providing up-front capital that is subsequently paid back through an addition to participants' property taxes.

With the situation in the Gulf and President Obama's support for carbon pricing, these issues won't be cooling down anytime soon. Stay tuned for updates!

With opportunities in the energy arena growing, competition for experienced energy efficiency or conservation staff is increasing. The good news for utility hiring managers is that at the same time, opportunities for future job candidates to be trained in the energy industry and job-seeker interest in utility careers are also growing exponentially.

One of the main drivers is the millions of Recovery Act and state and local dollars being invested to develop a clean energy workforce. How can you position your utility to attract this newly trained talent? How can you take advantage of this unprecedented opportunity to increase your existing staff's capabilities? What skill sets should you be seeking to respond to the challenges and opportunities ahead?

The Energy Center of Wisconsin has been conducting on-going analysis of workforce development, training and energy efficiency program developments and presented their findings and made the case that the time now to respond to the workforce capacity challenges facing utilities in a webinar, Tuesday April 27th - visit ECW to access the archived version of the webinar.

We caught up with presenter, Marge Anderson, about why public power utility hiring managers and energy efficiency program planners alike shouldn't miss this discussion.

Q: Why should this be top of mind for utilities now?
A: Utilities have an opportunity to benefit in the immediate future from the government and private industry emphasis on accelerating energy efficiency. Public power utilities have even more to gain than large IOU's because of their close-knit relationships with their communities. Energy efficiency - and building retrofits in particular - employs a 100% local workforce, and 92% of the products used in retrofits are made in the U.S.A. So while reducing demand, helping public power utilities manage their loads, and helping communities increase their energy independence, it can be a driving force for local economic development and jobs as well.

Q: Do you have an example of the lengths a utility went to find a qualified person?
A: I don't have an individual example, but there is a compelling report just out from Lawrence Berkeley Labs that we will reference in the webinar that demonstrates how few institutions of higher learning are focusing on the unique knowledge and competencies around efficiency program design and management. We do see an increasing trend of major consulting firms and utilities battling over experienced talent, and now community-led programs will be competing for this talent as they add sustainability directors and other positions to drive consumer demand for efficiency, sustainability and green.

Q: What other sectors are utilities competing with for new hires?
A: Utilities will compete with private consulting firms, government and municipal programs, and large commercial/industrial facilities for experienced energy engineers. Utilities should partner with local educational institutions to make sure the faculty and students in engineering programs understand the opportunities in energy management and energy efficiency. Utilities also need to pay attention to shortages of qualified workers among the trade ally community. These are the folks who utilities count on to install measures correctly so that savings goals are met. A shortage of them, or workers without the appropriate building science credentials and attention to energy use, will create lost opportunities for utilities.

Q: Should utilities build up their capabilities in-house versus (or in addition) to out-sourcing?
A: In my opinion, there's not one right or wrong answer about out-sourcing. Some utilities find it convenient to work with consulting firms and learn from their collective experience with other clients; others like to maintain consistency over time and customer continuity by keeping services and product-development in-house. However, public power utilities have unique opportunities to field their own retrofit or energy auditing capabilities because they can bring these services to scale in a targeted geographic area, while leveraging their strong community images. This can enhance both revenue and customer perceptions.

Listen to the webinar archive >>

Removing Barriers to Investment in Clean and Efficient Energy

River Falls Municipal Utilities (RFMU), which serves 5,800 customers in River Falls, WI, is celebrating the recent launch of “Save Some Green,” an innovative financing program, designed to help residential customers purchase and install renewable energy systems and make energy efficiency improvements to their homes.

RFMU’s program follows the Property Assessed Clean Energy or PACE model, which allows customers to finance projects through a loan that is attached to their property and paid back overtime via a line item on their property tax bill.

Attaching the loan responsibility to property itself rather than the owners means the payments will transfer to the new owner if the property is sold. This repayment structure makes costly energy efficiency projects with longer payback periods more palatable for homeowners who are not certain how long they will stay in the improved property and reap the energy and cost savings benefits.

How is the Program Structured?

Although modeled after the Berkeley FIRST program, RFMU's program is unique in that it is 100 percent utility-funded and administered. Thus far, RFMU has committed over $250,000 of general funds to a revolving loan fund to support the program. In 2010, the utility hopes to make anywhere from 5 to 10 loans (of up to $50,000) at an interest rate of 4 percent. To assure that only "shovel ready" projects resulting in cost-effective energy savings are considered, the program requires applicants to first invest in a Home Performance with ENERGY STAR energy analysis, have the project appraised by an approved contractor and obtain bid proposals.

During a one-on-one consultation with the applicant, the program coordinator reviews the results of the energy analysis and provides referrals to grants, tax credits and other subsidies that could offset some the costs of the recommended renewable and energy conservation measures. While "Save Some Green" focuses on financing clean energy systems, according to RFMU's Conservation and Efficiency Coordinator, Mike Noreen, the program emphasizes the importance of first pursuing the cost-effective energy efficiency measures recommended by the energy analysis. In certain cases, the program will also help finance energy efficiency improvements in conjunction with a qualifying renewable energy project.

Helping the Community Meet its Conservation Goals

RFMU and the "Save Some Green” program are part of "Powerful Choices," a community-wide initiative to make the City of River Falls a model for sustainability initiatives in the state and region. In this regard, River Falls has made significant progress. The community of just over 14,000 ranks third in the country for green power sales as a percentage of total retail electric sales, with an impressive 5.8 percent of total electricity use coming from green power in 2008. River Falls is also a part of the Environmental Protection Agency's Green Power Communities, a voluntary program that supports community procurement of green power by offering expert advice, technical support, tools and resources.

To learn more about the River Fall Municipal Utility's program, visit the "Save Some Green" site or contact RFMU's Conservation and Efficiency Coordinator Mike Noreen.

Learn more about property assessed clean energy or PACE programs.

This month, many states will be launching their version of the Energy Efficient Appliance Rebate Program. Backed by $300 million in funding from the American Reinvestment and Recovery Act, the programs offer incentives to homeowners who purchase qualifying ENERGY STAR appliances.

What's the Deal?

Each state developed its own rebate program and had the flexibility to select which appliances to include and what rebate amounts to offer. Some are fixed timeframe promotions, like Florida’s which will launch April 16 and is scheduled to last 10 days. Others will continue until the money runs out.

Based on the response in states that launched earlier this year, available funding may not last long, so you should encourage your customers to act fast! Iowa's program, for example, with rebates of $100 to $500, was over in just one day. Many states, like Ohio, are even having customers reserve their rebates online in advance, so they can ensure that the programs are not oversubscribed. 

In most cases, customers will be able to compound their savings by also taking advantage of other available financial incentives, including your utility’s appliance rebate program or state/federal tax credits. For example, Tacoma Power customers who buy a qualifying clothes washer are eligible for both the $100 from the state’s appliance rebate program and the $100 rebate available from the utility.

Are Dealers Ready?

Retailers are gearing up too, with many national chains planning to open their doors at midnight on the promotion’s start date and extend store hours throughout. With several large states, such as Texas, Illinois and Florida starting their programs on the same day (April 16) and being closely followed by California and ten other states on Earth Day (April 22), manufacturers could have a hard time keeping up with demand.

To find out the details of your state’s program and help your customers get in on the savings, visit the U.S. Department of Energy’s Approved Energy Efficient Appliance Rebate Program list or your State Energy Office’s website.

What is HOME STAR?
HOME STAR – nicknamed “Cash for Caulkers” – is a proposed federal program that would provide direct incentives to homeowners who invest in improving the energy efficiency of their homes. In addition to allowing Americans to see immediate savings of 5 – 40 percent on their energy bills, the program could also provide direct economic benefit by putting hundreds of thousands of unemployed Americans back to work and stimulating demand for building materials produced by American factories.

What are the Proposed Incentives?

• SILVER STAR: Homeowners would be eligible for rebates of $250 to $1,500 for the purchase and installation of energy-saving equipment including furnaces and water heaters or for home performance improvements such as better insulation, windows and air sealing. Cap – Up to 50 percent of project cost or $3,000 per/home.
• GOLD STAR: Homeowners would be eligible for rebates of $3,000 for retrofit measures that would result in 20 percent energy savings, and then an additional $1,000 for each additional 5 percent of energy savings. This path requires working with a qualified contractor to conduct a home audit and tailor/implement a retrofit plan. A percentage of projects would be audited to ensure that the improvements perform as expected. Cap – Up to 50 percent of project cost or $8,000.
• Project Financing: In all of the scenarios described above, homeowners would be required to come up with at least 50 percent of the upfront costs. To make sure that more households are able to take advantage of the program, the HOME STAR proposal includes support for state and local entities to be able to provide low-interest financing to assist with the portion of the costs that homeowners are responsible for.

How can Utilities Participate in HOME STAR?
HOME STAR is likely to provide new savings opportunities for some systems and their customers. The latest program outline proposes the development of a network of “rebate aggregators” to provide back-end support such as reviewing rebate applications and facilitating the delivery of rebates. Entities would also be selected to perform quality assurance audits. Utilities that already have residential retrofit programs, have established quality assurance provider networks or demonstrate that they can perform these functions are among those eligible to apply to be rebate aggregators and quality assurance implementers. Utilities are also able to participate as “qualified financing entities.” The proposal directs the U.S. Department of Energy to develop guidelines that allow participating utilities to count the energy savings towards State-level energy savings targets.    

What is the Likelihood of HOME STAR Becoming Law?
HOME STAR’s prospects should be known within the next several weeks. The proposal has strong support from a coalition that includes product and equipment manufacturers, retailers, contractors, environmental and energy-efficiency groups and labor advocates who want to see the anticipated energy savings and job creation benefits realized. HOME STAR has also been warmly embraced by the Obama administration, but funding and implementation of the program require congressional action.

EDITOR'S NOTE: On April 15th, the the House Energy and Commerce Committee approved the bill by a vote of 30-17.

How would HOME STAR affect your utility?
Visit CEEP’s discussion forum and share your thoughts with your peers.

In 2009, customers of public power utility, Snohomish PUD, lowered their utility bills by $5.4 million by participating in energy conservation programs.

Snohomish's Program Portfolio

Some of the biggest energy savers were businesses, from local pizza parlors and car dealers to hotels and major industrial manufacturers. Business customers completed nearly 700 projects with the PUD, including lighting and HVAC retrofits. PUD also made a push to encourage area grocers to replace their refrigeration systems.

Residential customers got in on the savings too through weatherization and rebate programs. New for 2009 was a rebate and optional low-interest loan program to encourage customers to purchase ductless heat pumps. Compact fluorescent light bulbs, which PUD works with manufacturers and distributors to discount, remained popular with cumulative sales topping 3.5 million since the program's inception.

The utility continued to raise awareness for its conservation programs through its " Be a Conservation Sensation Campaign", which helps customers identify new ways to save energy. In 2009, PUD called on customers to reduce their energy use by 10 percent by signing onto the Energy Challenge. To date, 80 businesses and more than 1,400 residential customers have taken the pledge.

The Results are In...

By partnering with customers, PUD beat its 2009 conservation goal by 22 percent and collectively, consumers and local businesses lowered their electric bills by about $5.4 million. To build on this success, the utility has budgeted $21 million for its conservation programs this year and partnered with the City of Everett and Snohomish County to secure nearly $2.2 million in federal stimulus funds for energy efficiency projects in local homes and businesses.

Snohomish PUD serves 30,000 commercial and industrial customers and 290,000 residential customers in Washington State.

Learn More about Snohomish's Programs>>

The Building Codes Assistance Project (BCAP) is tracking code improvements in several cities through its Ten Places to Watch in 2010 Campaign. Among them is public power city Austin, Texas for its above-and-beyond adoption and implementation of 2009 International Energy Conservation Code (IECC).

Austin, Texas, is one of the fastest growing cities in America – and with good reason. The city offers something for everyone: the political fervor of a state capital, the laidback vibe of a college town and the rapid pace of a booming business center.

Although well-known as a progressive enclave in a staunchly conservative state, the city and its metro area strike a delicate political balance. The city's rapid growth - and that of its surrounding subuarbs - has raised the profile of environmental issues within local government and , accordingto some citizens, threatened the city's core values. Nevertheless, Austin's record of environmentalism and energy efficiency has earned it a spot on the short list of the country's greenest cities.

Austin Energy, the city's community-owned electric utility, is one of the driving forces behind the city's efforts. Taking into account Austin Energy's recommendations as well as others from a number of appropriate city boards and commissions, the city council in 2007 adopted the 2006 IECC with a number of strengthening amendments, including those concerning ventilation, lighting, reflective roofing and vapor issues.

The most significant improvement was establishing a mandatory testing requirement for residential construction. Today, utility staff work with the building department to provide onsite inspections of homes prior to granting occupancy permits.

Not yet satisfied with the current rate of progress, the city has aggressively raised the ceiling for energy efficiency and renewables. Austin Energy runs one of the nation's most successful green building programs for both residential and commercial construction. In 2007, the city council passed a resolution to establish zero-net-energy single-family homes by 2015; it plans to accomplish this goal through specific incremental improvements in the code, coupled with design features that allow on-site energy generation.

For more information on these cities and others in the Ten Places to Watch in 2010 campaign, visit BCAP's website, OCEAN.

Waverly Light and Power (WLP), a utility that serves just 4,600 customers in and around Waverly, Iowa, issued a report this month that demonstrates the tremendous impact that energy efficiency programs have had for the utility and the community, since they began in 1991.

Waverly's Accomplishments:

• Total demand reduction of 3.4 MW
• $6.2 million in customer savings
• $9 million in deferred capital costs

Also of note, is the recent increase in customer participation. Participation rates in the last five years are nearly triple those for the programs offered from 1992-2003.

Waverly's Program Portfolio

In 2009, 20 percent of the utility’s residential customers participated in one or more of the available rebate programs. WLP’s most popular residential program was its ENERGY STAR Change a Light Campaign. Other draws were WLP’s rebates for ENERGY STAR clothes washers and refrigerators. 94 percent of customers that took advantage of the refrigerator rebate also opted to recycle their old unit, compounding the savings to the utility.

Since its inception in the mid 1990’s, the Good Cents residential new construction program has been a large contributor to WLP’s MW savings. Good Cents provides incentives to homeowners and home contractors that follow the program’s standards, which include requirements for insulation, windows and doors and HVAC equipment, as well as a blower door test at the completion of construction. WLP’s Good Cents program yields approximately 1.5 Kw per home reduction on peak-coincident demand versus homes built to code, meaning WLP can serve five new Good Cents homes with the same capacity required to serve three homes built to code.

Keeping it Local

A unique feature of Waverly’s programs is that most rebates are issued in “Waverly Dollars,” a program of the local Chamber of Commerce that keeps dollars in the community and helps to boost sales for local businesses.

WLP manages all of its programs in-house and has one full-time energy efficiency program manager on staff.

View WLP's conservation analysis >>