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California Energy Efficiency Industry Council

Policy CallSeptember 23, 2016

Agenda

1) Announcements

2) What’s Coming Up

3) Custom Review Check-in

4) CAEECC

5) Demand Response Proposed Decision

6) IDER – Societal Cost Test Workshop

7) Open Discussion (if time)

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Announcements

• CA’s Premier EE/DR Conference – “The Future is Now”

– September 27:

• ½ day training: EE and DR history and current policy in CA

• Energy Champion Awards Reception

– September 28th

• Full Day Conference plus Closing Reception

REGISTER at www.EfficiencyCouncil.org/fall2016/

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What’s Coming Up?

• Integrated Resource Planning workshop, 9/26

• Demand Response Reply PD Comments, 9/26

• DR Click-Through Workshop, 9/29

• California Behavior Summit, 9/29

• DRP – ICA & LNBA Working Group, 9/30

• CAEECC, September 30 @ noon, Webinar, tentative

• CAISO DR Workshop, 10/3

• DR Click-Through Workshop, 10/5

• Diablo Prehearing Conference, 10/6

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Custom Review

• Checking in: –What is recent member experience?

–Any process irregularities?

–Are project approvals moving?

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CA EE Coordinating Committee

• Meeting on 9/21

– Draft Conflict of Interest rules presented

• Details to be worked out, but company participation will not likely be a problem

– Transitioning to 3PP outsourcing – stay tuned

– Example Business Plan Chapters discussed

– PA’s proposed:

• SW downstream pilots

• Lead Administrator for Statewide (SW) programs

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CAEECC – Draft SWDownstream PA Plan

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CAEECC – Draft SW PA Plan

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Demand Response PD

• PD issued on 8/30;

• Efficiency Council filed opening comments on 9/19;

• Reply Comments due 9/26;

• Eligible for vote by Commission at 9/29 meeting

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Demand Response PD

• Adopts goal and principles for DR programs;

• Reduce role of utilities; enhance role of third parties;

• Utilities file two sets of applications: one in December 2016 for existing DR programs beginning in 2018, and one in October 2018 for newer model DR programs beginning in 2020;

• Establishes a five-year budget cycle for DR with a mid-cycle review; and

• Prohibits the use of fossil-fueled back-up generation during a DR event starting January 1, 2018.

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DR PD Opening Comments

• Onsite generation which meets a customer’s baseload demand, CHP, should be excluded from the restrictions on the use of back-up generation during a DRresponse event;

• The goal and priorities for DR should be expanded to reflect the position of DR the top of the loading order and to meet the potential for DR identified by LBNL;

• The role of the utilities as administrators of the DRAM should be on an interim basis until the DRAM moves from pilot to program status and the role of utilities in load-modifying programs should be transitioned to that of administrator and primarily rely on third-party competitive procurement for program implementation;

• The value and role of non-event based, load modifying resources should be enhanced; and

• The authorized capacity of one gigawatt for DR should be fully utilized and the previously established targeted registrations for DRAM should not become an artificial enrollment cap.

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Integrated Distributed Energy Resources (R.14-10-003)

• IDER Scoping on Cost Effectiveness:

–Continued development of technology-neutral cost-effectiveness methods and protocols, including but not limited to:

• Refinement and enhancement of valuation or cost-effectiveness methods, including locational variation, established in this proceeding for the consistent use in resource-specific proceedings

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Integrated Distributed Energy Resources (R.14-10-003)

• Cost Effectiveness Working Group established in October, 2015

• IDSM Cost-effectiveness Mapping Project Report & Staff

• Regular meetings until last spring

• Results – modified Resource Balance Year test in Avoided Cost Calculator

• “Societal Cost Test Workshop”, 9/22

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Societal Cost Test Workshop

• Approaches for addressing societal benefits (including the “social cost of carbon”) in cost-effectiveness reviews of CPUC-jurisdictionalprograms

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Option 1: A Societal Cost Test

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Option 1: A Societal Cost Test (2)

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Other Options to Address Societal Benefits

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Open Discussion or Questions?

THANK YOU!

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