# Presentation: 761235

## Collaborating for Clean Energy

**Collaborating for Clean Energy**

**How a New State-Federal Partnership Can Help Promote Energy Codes**
*2005 National Workshop on State Building Energy Codes*
*June 29**th**, 2005*
*Julie Rosenberg*
*EPA State and Local Capacity Building Branch*

## My Goals for This Presentation are to...

- Emphasize that states and municipalities are promoting clean energy to address a range of environmental and economic challenges, and to capture related benefits
- Tell you about a new EPA partnership with states to increase the use of cost-effective clean energy
- Highlight 3 ways in which states can promote codes as a way to boost clean energy and capture co-benefits
- Learn from you about ways that EPA can continue to  promote building energy codes as a key clean energy approach for states

## EPA’s State and Local Clean Energy ProgramsWho we are and what we do... 

- Located in EPA’s State and Local Capacity Building Branch
- Emphasis on voluntary clean energy actions with state and local governments
- Integrated energy-air quality planning
- Agency collaboration on policy development & implementation
- Assist with local and state efforts that...
- Improve AQ and public health
- Increase energy efficiency and renewables
- Promote economic development
- Lower greenhouse gas intensity
- Provide tools and resources to measure these benefits
- Showcase results and partner successes
- Build and sustain peer networks
- Link-up to other EPA and DOE voluntary programs...

*** ******More later on EPA’s Clean Energy-Environment State Partnership...***

## Why is Clean Energy a Smart Investment? 

***The benefits are numerous and substantial...***
**Energy **
- Reduce energy demand
- Stabilize energy prices
- Improve electric system reliability
- Enhance energy independence
**Economics**
- Reduce costs for businesses and consumers
- Job creation
- Greater overall economic growth
**Environment and public health**** **
- Improve air quality
- Reduce greenhouse gas emissions

**NY’s Energy Conservation Construction Code (ECCC) reduces CO2 emissions by 517,000 tons per year and acid rain-causing SO2 by 493 tons/yr**

**Over 20 years, the Massachusetts Commercial Energy Code is expected to prevent: 7,478 tons of SO2, 2003 tons of NOx, 1.3 million tons of CO2**

**By 2008, the Texas’ Building Energy Performance Standards are projected to reduce NOX emissions by 21,000 tons**

## Why Clean Energy Now?

**Energy Markets**
- Primary energy demand expected to climb 36% by 2025
- Gas prices expected to increase over time
**Air Quality**
- ~126 million people in counties where air unhealthy at times for ≥ 1 pollutant

**Electricity Policy**
- Billions to be spent on new transmission in coming decades
- Reliability is widespread concern
**Climate Policy**
- US CO2 emissions expected to grow 39 percent by 2025

***Factors are converging in favor of clean energy...***

*** ***_***Clean energy***_*** includes:***
***  ******Energy efficiency ***
***  ******Renewable energy ***
***  ******Clean distributed generation (including combined heat and power)***

**Notes:**
Additional Bullets

Energy Markets
Natural gas demand expected to grow 1.8% annually through 2025 

Air Quality
EPA expected to designated 100+ areas as non-attainment  

Electricity Policy
Many rate cases expected due to natural gas prices

Climate Policy
High natural gas prices increasing interest in other fuels

## Seizing the Opportunity 

**Energy efficiency and other demand-side measures **
- energy savings targets
- energy portfolio standards
- appliance standards
***building codes**** *
**Energy supply measures**
- renewable portfolio standards (RPS)
- clean distributed energy resources
- uniform interconnection standards
- output-based emission regulations

**Financial strategies**
- public benefits funds
- loans
- tax incentives
**Power market rules and regulations**
- decoupling utility profits from sales
- portfolio management
- integrated resource planning
- transmission and reliability planning

***States are Municipalities are Innovating and Gaining Experience with Clean Energy Policies***

**Notes:**
Additional Bullets

Energy efficiency and other demand-side measures
	CT requires utilities to spend 3% of their revenues on energy efficiency measures; VT requires 3.4% of utility revenues be used to promote 	energy efficiency 

Energy supply measures
18 states and DC have adopted an RPS requiring a minimum percentage of electricity come from renewable resources by a given date; range is from 1.1% (AZ) to 30% (ME)

Financial strategies
22 states have public benefits funds; funds have generated a total of $2 billion annually for cost-effective clean energy

Power market rules and regulations
CA, ID, ME, OR, and UT are finding that decoupling utility profits and sales can lead to improvements in energy efficiency and growth of renewable energy 

## Building Energy Codes are Critical

**States and Localities are Developing Successful Approaches...**
- OR and WA rely on simplified, prescriptive approach verified by computer simulation
- 94% of homes in Washington, 100% in Oregon met or exceeded code requirements for building envelope
- 2006 IECC will be similar to OR model

- CA’s Title 24 performance-based standards are successful:
- Stringent
- Achieve field performance
- Actively supported and enforced

***A DOE study found building codes and standards, among all SEP activities, to result in the greatest savings per dollar.***

**Notes:**
ADDITIONAL TPs ON CA Title 24 standards 
1) They are stringent  The Title 24 standards typically exceed IECC and ASHRAE efficiency levels
2) They achieve field performance   Field verification studies for Title 24-compliant buildings showed that 88% of homes met code requirements 
3) They are actively supported  The California Energy Commission maintains an expert staff to manage the code development process, and to provide technical assistance in code interpretation and enforcement. 

OPTIONAL BULLETS ON STATE LESSONS FROM CODES

1) States are Leveraging Federal Voluntary Programs 
EPA and DOE ENERGY STAR homes program requires 30% savings relative to minimum energy codes
DOE’s Building America program aims for 50% energy savings 

2) States are Proving that Collaboration is Important
Over 20 organizations, representing government, industry, and NGO sector, participated in development of TX Building Energy Performance Standards

## Building Energy Codes are Critical

**... ****and Getting Results**
- CA 2005 building efficiency standards projected annual savings:
- 180 megawatts of electrical demand
- 475 gigawatt-hours of electrical energy
- 8.8 million therms of natural gas
- TX cities reaping savings from SB5
- Houston saving > 40 million kWh through lighting and other projects
- Fort Worth energy consumption in 2002 was 9.4% lower than in 2001
- Dallas County invested $6.4 million; getting ~ $920,000 annually in energy savings

**Notes:**
ADDITIONAL TPs ON CA Title 24 standards 
1) They are stringent  The Title 24 standards typically exceed IECC and ASHRAE efficiency levels
2) They achieve field performance   Field verification studies for Title 24-compliant buildings showed that 88% of homes met code requirements 
3) They are actively supported  The California Energy Commission maintains an expert staff to manage the code development process, and to provide technical assistance in code interpretation and enforcement. 

OPTIONAL BULLETS ON STATE LESSONS FROM CODES

1) States are Leveraging Federal Voluntary Programs 
EPA and DOE ENERGY STAR homes program requires 30% savings relative to minimum energy codes
DOE’s Building America program aims for 50% energy savings 

2) States are Proving that Collaboration is Important
Over 20 organizations, representing government, industry, and NGO sector, participated in development of TX Building Energy Performance Standards

## The Clean Energy-Environment State Partnership

**What is the Partnership?**
- A voluntary state-federal partnership that helps states promote cost-effective clean energy to achieve economic, public health, and environmental goals

*** ******On the Web: http://www.epa.gov/cleanenergy/stateandlocal/partners.htm ***

- Provides a platform for promoting clean energy policies that:
- Improve air quality and public health
- Reduce energy use and GHGs
- Enhance economic development
- EPA helps

-   **Participating**
**   ****State**

**Why are States Participating?**

## Clean Energy-Environment State Partnership – Key Program Elements

**Partner commitments*********:**
- 1 or more state agencies sign MOU with EPA
- Foster _collaboration_ among state agencies
- Establish 1 or more _clean energy goals_
- Develop and implement clean energy-environment _action plan_
- Conduct analysis
- Work with EPA to evaluate options and measure benefits

**In return, EPA provides:**
- Tools and analysis
- Clean Energy-Environment Guide to Action
- State-to-state peer exchange and communication support
- Information about funding opportunities and related clean energy resources
- National recognition
********each step represents an opportunity for code officials to get involved...***

## Opportunity for Promoting Codes –Collaborate with State Agencies in Partnership 

**What is the “state collaborative process”?**
- Forum for state agencies to work together
- Outline clean energy goals
- Develop ***Clean Energy-Environment Action Plan***
- Participating agencies typically include, but not limited to:
- Environment
**Why***** *****Should Code-Administering Agencies Get Involved?**
- Opportunity to promote code upgrades and new codes
- Leverage other state clean energy policies and goals, for example:
- Public benefit funds
- Teach and learn from other states and localities

- Energy

- PUC

- Clean air Strategies

**Notes:**

Public benefit funds can pay for code enforcement
“Best practices” are often transferable: 
educating and training key audiences
maintaining adequate budget and staff
providing critical information resources

How Can Code-Administering Agencies Get Involved?

They can be a signatory to the state-EPA memorandum of understanding
They can work to develop the Clean Energy-Environment Action Plan 
 A document that provides a state-specific blueprint for clean energy policies and goals 

## Opportunity for Promoting Codes – Help Develop the Partnership Action Plan

**What is the a ****Clean Energy-Environment Action Plan?**
- Document that provides a state-specific _blueprint for clean energy_ policies and goals
- The plan...
- Identifies barriers, opportunities, and strategy for action
-  Energy efficiency
-  Renewables, other clean supply
- Includes an evaluation of each measure’s costs and benefits
**Why Should Code Advocates Participate?**
- Codes provide cost-effective efficiency improvements
- Code advocates can help ensure that:
- Realistic goals are set
- Implementation plan is strategic
- Proper measurement, evaluation and reporting systems are in place

## Opportunity for Promoting Codes – Use Partnership Resources: “Guide to Action”

**What is the Guide to Action?**
- Provides in-depth summaries of 14 clean energy policies pertaining to:
- Energy efficiency
- Energy supply
- Electricity market rules
- Cross-cutting actions
- Outlines examples, results, and lessons-learned
- Is relevant to a wide range of state experience with EE, RE, and clean DG

**Notes:**
Energy efficiency 
EE goals
PBFs
building codes
appliance standards)

Energy supply 
	RPS
	PBFs
	interconnection rules
	output-based standards

Electricity market rules 
	decoupling
	portfolio management
	IRP

Cross-cutting actions 
	financing
	lead by example
	energy/air integration

## Opportunity for Promoting Codes – Use Partnership Resources: “Guide to Action”

**How Does the Guide Promote Energy Codes?**
- Characterizes energy-savings and economic benefits
- Provides real-world results and state-by-state code status
- Highlights case studies (i.e., CA, TX, OR, WA)
- Describes best-practices:
- For developing and adopting energy codes
- For energy code implementation
- Differentiates between upgrades and new codes
- Identifies key players and their roles
- Provides tips on running a collaborative process for code adoption
- Outlines options for monitoring & evaluation
**In Progress – August ’05 Release**

**Notes:**
Energy efficiency 
EE goals
PBFs
building codes
appliance standards)

Energy supply 
	RPS
	PBFs
	interconnection rules
	output-based standards

Electricity market rules 
	decoupling
	portfolio management
	IRP

Cross-cutting actions 
	financing
	lead by example
	energy/air integration

## Opportunity for Promoting Codes – Use Partnership Resources: “SIP Guidance”

**New document: **“*Guidance on State Implementation Plan (SIP) Credits for Emission Reductions from Electric-Sector Energy Efficiency and Renewable Energy Measures*”
- Supports efforts to include EE/RE projects, policies, and programs in SIPs
- Specifically mentions building codes as qualifying project
- Guidance includes:
- General information and background
- Step-by-step procedure
- List of tools and resources
- Examples of proposed SIP submissions
- On the Web: http://www.epa.gov/ttn/oarpg/t1/memoranda/ereseerem_gd.pdf
- Also see “*Emerging & Voluntary Measures Policy”*: http://www.epa.gov/ttn/oarpg/t1/memoranda/evm_ievm_g.pdf

**Notes:**
Emissions reductions must be:
Quantifiable 
Surplus – not included in baseline or in other measures
Enforceable – requirement or voluntary measure
Permanent – for the time period of the SIP

Also ...
Geographically relevant to the air quality planning area

What is the Process for Including Emission Reductions from EE/RE in a State Implementation Plan (SIP)?

The basic steps for determining emissions reductions toward the SIP from EE/RE projects are:
Identify and collect information on eligible EE/RE projects
Estimate the energy savings associated with those projects
Calculate the emissions reductions associated with those energy savings
Demonstrate to the EPA that the reductions meet EPA criteria
Monitor/report actual savings/emission reductions post-project

## SIP Guidance Example – Quantifying SIP Credit from TX Building Energy Code

- TX SB 5 aims to reduce air pollution by establishing state’s first building code
- IRC is standard for single-family construction
- IECC is standard for other residential and C&I construction
- IECC cooling energy savings are substantial
- Electricity reductions from the solar heat gain standard alone projected to reduce 1.8 billion kWh over 20 years
- Texas A&M developed emissions calculator to assist communities in evaluating and quantifying air benefits of code amendments
- Reports reductions to TX PUC and the Texas Natural Resources Conservation Commission
- Code approved for emissions credits from EPA in the SIP for ozone pollution
- 0.5 tons per day of NOx (ozone precursor)
- First time an energy code adopted by a state specifically to improve air quality

**Notes:**
What Building-Related Measures are eligible for Inclusion in the Texas SIP?

1) Building Energy Codes (New Construction and Retrofits)
State-mandated IECC building energy codes
Locally-mandated “green” building energy codes (beyond state minimum)
Voluntary local “green” building energy standards (beyond state minimum) 
2) Voluntary Above-Code Rated Buildings
Energy conservation building retrofits (including building HVAC, appliance upgrades, and cool roofs)
Special project new buildings (LEED-certified or comparable)
Building commissioning projects

## Opportunity for Promoting Codes – Use Partnership Resources: Technical Forum

**What is the Technical Forum?**
**Peer exchange among state policymakers**
- Policy-targeted, facilitated conference calls
- Reports and white-papers
**Goal is to help states**
- Learn from each other
- Identify the most productive policies, programs, technologies
- Quantify the costs and benefits of EE/RE measures
- Overcome barriers and provide effective incentives for EE/RE
**How can Code Officials Engage in the Technical Forum?**
- Participate in conference calls
- Identify connections between building energy codes and other energy efficiency policies
**Other Peer Exchange on the Horizon**

**Notes:**
What is the Goal of Partnership Peer Exchange for State Policymakers?
To help states:
Identify the most productive policy measures, programs, and technologies 
Quantify the costs and benefits of EE/RE measures 
Overcome barriers and provide effective incentives for EE/RE 
What are Some Peer Exchange Opportunities?
Independently facilitated discussions
Policy-targeted conference calls and meetings
Conferences and training sessions
Reports and white-papers

What Types of Codes-Related Questions Can Peer Exchange Help Answer?
What are the untapped opportunities for building energy codes? 
Which efficiency measures provide the "biggest bang for the buck?" 
How can states analyze and quantify the economic and environmental costs and benefits associated with codes? 
What have other state policy makers done to overcome barriers to codes?

What Types of Codes-Related Questions Can Peer Exchange Help Answer?
What are the untapped opportunities for building energy codes? 
Which efficiency measures provide the "biggest bang for the buck?" 
How to states analyze and quantify the economic and environmental costs and benefits associated with codes? 
What have other state policy makers done to overcome barriers to codes? 

## Main Points 

- Clean energy is critical
- _Includes_: energy efficiency, renewables, clean distributed generation
- _Furthers_: economic and environmental sustainability
- _Achieved through_: integrated energy-air quality policies, programs, and partnership collaboration
- Codes are a cost-effective strategy for capturing clean energy benefits
- Successful examples and best-practices exist
- Collaboration fosters code development and adoption
- The Clean Energy-Environment State Partnership can help
- 3 resources are outlined above
- We want feedback on ways to ensure that Partner States maximize savings from building energy codes

**Notes:**
Emphasize that states are promoting clean energy to address a range of environmental and economic challenges, and to capture related benefits 

Tell you about a new EPA partnership with states to increase the use of cost-effective clean energy 

Highlight 3 ways in which states can promote codes as a way to boost clean energy and capture co-benefits

Learn from you about ways that EPA can continue to  promote building energy codes as a key clean energy approach for states

## We Want to Know How Can EPA Help – Questions for Discussion 

- Your feedback can ensure that our efforts are effective:
- How can we enhance collaboration among code, energy, and environmental experts in your state?
- What resources do code and energy staff need to characterize the environmental benefits of building codes?
- What other products or forums would help state and local governments assess these opportunities?
- Other suggestions for how EPA can help?
*Feedback here... or later...** *

**Notes:**
Mention that we have limited budget and broad focus on efficiency and renewables.
Mention current status and future timeframe w/ respect to the potential for expanding the partnership to include new states.

EPA’s Clean Energy-Environment State Partnership wants to help states promote building codes to lower energy demand, save money, and reduce pollution.

## For More Information 

**How Can I Get More Information or Provide Feedback?**
- EPA’s State Clean Energy-Environment Partnership Program:
- _[www.epa.gov/cleanenergy/stateandlocal/partners.htm](http://www.epa.gov/cleanenergy/stateandlocal/partners.htm)_
- Contact me: Julie Rosenberg
- 		State and Local Capacity Building Branch
- 		U.S. Environmental Protection Agency
- 		phone: 202-343-9341
- 		e-mail: _[Rosenberg.Julie@epa.gov](mailto:Rosenberg.Julie@epa.gov)_
- To learn more about state-specific clean energy activities and policy options:
- www.epa.gov/cleanenergy
- www.eere.energy.gov/state_energy_program