Shaping the Tradability of US Energy Efficiency

Shaping the Tradability of US Energy Efficiency Outreach to Minnesota Stakeholders on the

National Energy Efficiency Registry (NEER)

August 11, 2016

Energy Cast Webinar

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Financing Policy

Programs

Discover + Deploy the most effective solutions for a healthy, low-carbon economy

Planning

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Shaping the Tradability of US Energy

Efficiency Moderated by CEE:

Megan Hoye | Engagement Manager

Today’s Expert Panelists

Jessica Burdette

MN Depart. of Commerce

Jenna Jorns

The Climate Registry

Pat Stanton

E4TheFuture

National Energy Efficiency Registry:

Minnesota’s Role

Jessica Burdette

State Energy Office Manager, Efficiency & Operations

Minnesota Department of Commerce, Division of Energy Resources

• Project Origins

–US Department of Energy Competitive Award

– Lead by Tennessee & five other states

–Supporting organizations include The Climate

Registry & NASEO

–Partner states include Minnesota, Oregon,

Pennsylvania, Michigan, Georgia

Introduction: National Energy Efficiency Registry


• Registry Purpose

–Central repository of EE projects

–Allow for EE program and initiative tracking

–Future compliance with the Clean Power Plan

–Voluntary market for tradeable credits

• Minnesota’s Role

–Provide input into operating rules

–Engage interested stakeholders

– Inform implementation roadmap


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Poll Question #1

Are you familiar with the National Energy

Efficiency Registry (NEER) Project?

• No, not at all

• No, but I have heard of it

• Yes, but only a little bit

• Yes, very familiar

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Audience Expertise & Interests

29%

35% 12%

24%

Draft principles& operatingrules

Examples of howstakeholders willuse

Developmenttimeline

35%

20%

14%

11%

8%

5%

5%

EfficiencyProgram…

Other

Utility

Clean EnergyAdvocate

Policymaker

Energy ServiceCo.

RatepayerAdvocate

Jenna Jorns

Policy Associate


Poll Question #1

Are you familiar with the National Energy

Efficiency Registry (NEER) Project?

No, not at all

Yes, but only a little bit

Yes, very familiar

About the NEER

A central repository that will allow the public and

private sectors to transparently track attributes

associated with energy efficiency initiatives

Policy neutral

Built on best practice

Registry design

EE accounting and reporting protocols

Will help states demonstrate progress towards

energy goals and potential compliance with

existing and future regulation

Will be able to track energy conservation and

other types of reduction efforts

NEER Objectives

Provide a consistent framework for EE to be

included as an “eligible resource” in federal

and state plans

Demonstrate verification of EE projects

according to the appropriate eligibility

standards

Facilitate the opportunity for inter- and

intrastate trading

Potential NEER Applications

Electric

EE

Fossil

Fuel EE

CEIP

(CPP) Non-

electric

carbon

regulation CPP

Compliance: other

Environmental or

Energy Policies

Performance-based

EE procurement

Supports multi-state EE

collaboration

Tracking for State

EE Programs

Poll Question #2

What potential NEER role are you most

interested in learning about?

Energy efficiency provider

State

Instrument buyer

Accredited Independent Verifier (AIV)

Others

NEER Support of State Efforts

Lowers the cost associated with

administering energy efficiency programs

and policies

Streamlines energy efficiency project EM&V

Supports state energy and environmental

planning efforts

Avoids double counting of energy savings

Creates greater transparency of energy

efficiency programs and impacts

Benefits of a NEER

The NEER will:

Not prescribe EM&V but will outline consistent

requirements for data

Aggregate rate payer and non-rate payer

programs

Support the development of financial

instruments representing verified EE savings

Be flexible to support a range of EE projects

and program types

NEER DEVELOPMENT PROCESS

States Initiative on Principles and Governance

Policy & Integration Working Groups

Committee to Draft Functional

Requirements

Development and Implementation

NEER

NEER Development Elements

State Initiative on Principles

and Governance

Two-year initiative to define:

NEER Principles and Operating Rules

• Steering/Advisory Committee to develop and finalize

• Multi-stakeholder Working Group ensures Principles and

Operating Rules meet the needs of all stakeholders

Roadmap for state adoption and implementation

Key functional platform components

Funded though U.S. DOE 2015 State Energy

Program Award to Tennessee


and Governance

State project partners:


and Governance

Supporting project partners:

Additional project support provided by:


and Governance Timeline

Timeframe Task

March – April 2016 Formation of Multi-stakeholder Working Group

& Steering/Advisory Committee

April 2016 – February 2017 Multi-stakeholder Working Group to draft

NEER Principles and Operating Rules

April – May 2017 Public comment period for draft NEER

Principles and Operating Rules

September 2017 Final roadmap for state adoption and

implementation

October 2017 Key functional platform requirements

Composed of ~125 members

Ensures draft Principles and Operating Rules

meet the needs of all stakeholders

Makes recommendations to steering committee

Ongoing membership pending ability to

accommodate additional participants

Email [email protected] if you are

interested in joining

Multi-stakeholder Working

Group

mailto:[email protected]

Working Group Timeline

Timeframe Activity

March 2016 Formation of Multi-stakeholder Working Group

April 14, 2016 Kickoff stakeholder webinar

June 15, 2016 Initial draft rules circulated to working group

July 14, 2016 Stakeholder webinar

August 1, 2016 Multi-stakeholder Working Group comments

due on initial draft rules

August 2016 Issue-specific sub-group calls

September 15, 2016 Stakeholder webinar; in-person option at

NASEO annual conference (Providence, RI)

October 2016 Stakeholder webinar (TBD)

November 2016 Stakeholder webinar (TBD)

February 2017 Final stakeholder webinar; in-person option at

NASEO meeting (Washington, DC) (TBD)

FUNDAMENTAL REGISTRY

ELEMENTS

About Attribute Registries

Track the non-energy attributes of generation

Come in all shapes and sizes

Registry

Single Purpose

Compliance

Voluntary

General Purpose

Compliance & Voluntary

Existing Registries and

Experience

Single Purpose Compliance Instrument Registries

Acid Rain Program Registry

RGGI Allowance Registry

Voluntary Registries

Green-e

Verified Carbon Standard Registry

General Purpose ‘all non-energy attribute’

certificate registries

M-RETS

PJM Generation Attributes Tracking System (GATS)

Basic Registry Elements

Basic elements are found in most attribute

registries supporting various policies

Accounts Assets Asset Output

Commoditized Instruments

Instruments Transactions

Instruments Retirement

HOW WOULD AN EE PROVIDER

USE NEER?

Draft Principles and Operating Rules

Sample Scenario

Private Lighting Contractor is EE Provider -- in a

contract with the site owner who has ownership

of EE Credits (EEC).

Assume there is a voluntary market for EECs

similar to green power market for renewables --

Buyers generally require NEER Enhanced QA/QC.

No ratepayer funding used

EE Provider sells EECs to Buyer who in

turn uses them as basis for making

sustainability claims

Sample Scenario



Instruments Transactions

Instruments Retirement

NEER Draft Rules Sections

Sec. 8: Instrument Transactions



Instrument Transactions

Instrument Retirement

EE Provider

Information

Static data

Step 1: Register an Account





Step 2: Register an Asset

A: EE Project

Information






A: EE Project

Information

B: EE Provider

Selects NEER

Enhanced

QA/QC Option





C: Attest to

Ownership

&

Exclusivity


A: EE Project

Information

B: EE Provider

Selects NEER

Enhanced

QA/QC Option

EE Provider installs project

and starts measuring

Avoided Electric Energy





Step 3: Asset Output

Reporting

A: EE Provider

Submits Asset

Output Report





A: EE Provider

Submits Asset

Output Report

B: QA/QC

Protocol

Completed w/

AIV Certification


Reporting





C: NEER-

Admin Loads

Verified Asset

Output Into

Log

A: EE Provider

Submits Asset

Output Report

B: QA/QC

Protocol

Completed w/

AIV Certification


Reporting





Step 4: Creation of Instrument

A: NEER-Admin

Deposits EECs Based

on Verified Asset output

into EE Provider’s Asset

Account





Step 4: Creation of Instrument

A: NEER-Admin

Deposits EECs Based

on Verified Asset output

into EE Provider’s Asset

Account

B: EE Provider

Executes a

Bilateral

Contract to

Sell EECs to a

Buyer





Step 5: Transfer of Instruments

A: EE Provider

Directs NEER-

Admin to Transfer

EECs to Buyer’s

Asset Account





A: EE Provider

Directs NEER-

Admin to Transfer

EECs to Buyer’s

Asset Account B: NEER-

Admin

Transfers EECs

Contingent on

Buyer

Acceptance

Step 5: Transfer of Instruments





B: NEER-Admin

Confirmation of

EEC Retirement

For Buyers

Sustainability

Documentation

Step 6: Instrument Retirement

A: Buyer Retires

EECs

NEER QA/QC PROTOCOL OPTIONS

NEER Basic Self-reported data

No M&V report or third-

party verification of

Dynamic Data

Full disclosure that EE

data is self-reported

No Instruments created

NEER Enhanced Self-reported data

Requires M&V report

Accredited Independent

Verification of Static

and Dynamic Data

EM&V standard

comparable to CPP MTR

Instruments created

Proposed QA/QC Options




Dynamic Data





Requires M&V report



and Dynamic Data

EM&V standard


Instruments created





Dynamic Data





Requires M&V report



and Dynamic Data

EM&V standard


Instruments created


Poll Question #3

Instruments should NOT be issued to Assets

using the NEER Basic QA/QC Protocol?

Agree

Disagree

Don’t have an opinion

Need more information

Poll Question #4

The NEER Enhanced QA/QC Protocols should

be comparable to the Clean Power Plan

Model Trading Rule (EM&V, etc.)?

Agree

Disagree

Don’t have an opinion

Need more information

For more information, please contact:

Thank you!

Acknowledgement: This material is based upon work supported by the Department of Energy, Office of Energy

Efficiency and Renewable Energy (EERE), under Award Number DE-EE0007219, CFDA No. 81.119.

Jenna Jorns

Policy Associate


(213) 784-4165

[email protected]

Pat Stanton

Director

E4TheFuture

(508) 740-2836

[email protected]

Audrey Starkebaum

Policy Analyst

E4TheFuture

(774) 777-5121 ext. 106

[email protected]

Peggy Kellen

Director of Policy


(213) 542-0291

[email protected]





Pg. 13

Shaping the Tradability of US Energy

Efficiency Moderated by CEE:

Megan Hoye | Engagement Manager

Today’s Expert Panelists

Jessica Burdette

MN Depart. of Commerce

Jenna Jorns


Pat Stanton

E4TheFuture

Audience Question & Answer 15 minutes

Webinar Archive Link:

https://www.mncee.org/resources/resource-center/

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