New Incentives for Energy Efficiency

William S. HaasEnergy Division Representative

Overview

• Why Energy Efficiency - Climate Change and Chicago

• About the new Energy Efficiency Portfolio Standard

• Implications of the Energy Efficiency Portfolio Standard

• Other DCEO Incentive Opportunities

City of Chicago Global Warming Task Force: Increasing Number of Days with Tmax > 90oF

-20

0

20

40

60

80

100

1960 1980 2000 2020 2040 2060 2080 2100

Nu

mb

er

of

Da

ys

> 9

0oF

Higher Emissions

Lower Emissions

+20 days

+50 days

Hayhoe, K., D. Wuebbles et al. 2008. Climate Change and Chicago: Projections and Potential Impacts. A report for the City of Chicago, 151 pp.

City of Chicago Global Warming Task Force: Increasing Number of Days with Tmax > 100oF

-10

0

10

20

30

40

50

60

70

80

1960 1980 2000 2020 2040 2060 2080 2100

Nu

mb

er

of

Da

ys

> 1

00o

F

Higher Emissions

Lower Emissions

+30 days

+10 days

Hayhoe, K., D. Wuebbles et al. 2008. Climate Change and Chicago: Projections and Potential Impacts. A report for the City of Chicago, 151 pp.

Energy Efficiency Portfolio Standard

• Requires additional, escalating electric consumption reductions every year (below currently projected baseline scenarios)

• Applies only to Commonwealth Edison & Ameren Companies

• Provides funding mechanism for new energy efficiency programs and initiatives for customers in the Commonwealth Edison & Ameren service territories

New Energy Efficiency Funding

Year Revenue Cap Funding Level DCEO Share2008 0.5% $53.2 million $12.9 million2009 1.0% $111 million $26.8 million2010 1.5% $172 million $41.6 million2011 + 2.0% $235 million $57 million

Public Benefit Funding for Energy Efficiencyas a Percent of Utility Revenues

Source: American Council for an Energy-Efficient Economy, September 2007

DCEO Portfolio

INCENTIVE• Public Sector (~65%)

– Municipals– K-12 schools– Community Colleges– Universities– State and Federal Facilities

• Low Income (~25%)– New Construction and Gut

Rehab– Moderate Rehab/

Prescriptive

MARKET TRANSFORMATION• Technical Assistance (~5%)

– Commercial Bldg Assessments– Design Assistance– Large Customer Management

Practices Assessments– Energy Performance

Contracting

• Education & Training (~5%)– Building Codes– Building Operators/Owners– Design/Construction and HVAC

Replacement Industry

Public Sector (~65%)• Prescriptive: specific incentives linked to easily

quantifiable, individual efficiency measures such as outdoor and indoor lighting, chillers, etc.

• Custom: an incentive linked to $/kWh saved for measures that are not standard, e.g., University labs and hospitals, museums, etc.

• New Construction: new construction funding for facilities beyond code

• Lights for Learning: contracting through k-12 schools to sell CFL bulbs and, including efficiency education for students.

Technical Assistance (~5%)

• Smart Energy Design Assistance Center (SEDAC): partnership with the University of Illinois to provide energy audits, analysis and design assistance to public and private building owners

• Large-customer Energy Analysis Program (LEAP): rebranding of the MEEP that provides management practices assessments and technical energy audits for large customers

• Energy Performance Contracting Program: technical assistance to public sector applicants financing energy efficiency projects through performance contracts

Green Ribbon Workshops

• Learn more about these new programs and how your organization can participate and save money– June 10: Chicago Hilton, Chicago– June 12: Doubletree Guest Suites, Downers Grove– June 19: Crowne Plaza Hotel, Mundelein– June 20: Holiday Inn Convention Center, Tinley Park– June 27: Cliffbreakers Riverside Resort, Rockford

• Representatives available to answer questions and discuss program guidelines and qualifications

• Visit www.comedcares.com to register

Environmental Benefits

Renewable Energy Programs

• Approximately $5 million per year for the Renewable Energy Resources Program

• Solar Energy Rebate Program: provides a rebate for eligible project costs related to a solar thermal or solar photovoltaic system installation under $50,000 in total cost

• Solar Thermal Incentive Program: provides a grant for eligible project costs related to a solar thermal system installation over $50,000 in total cost

Illinois Zero Waste Schools Program

• To encourage schools across Illinois to strive to become “waste-free” where virtually all waste generated at the school is reduced, reused or recycled

• Grants available for recycling, source reduction and composting projects in both public and private schools

• Visit www.istep.org to learn more

Key Web Links

Web Link Informationwww.illinoisenergy.org DCEO energy efficiency and renewable energy

programs for private, public and non-profit sectors

www.ileeps.org EEPS information for DCEO, ComEd and Ameren EEPS programs

www.sedac.org Smart Energy Design Assistance Center provides technical assistance for the private and public sector through energy information, news and trainings, energy service provider list

Contact Information

William S. HaasEnergy Division RepresentativeDepartment of Commerce and Economic OpportunityJames R. Thompson Center100 W. Randolph, Suite 3-400Chicago, Illinois 60601312-814-4763 (voice)312-814-1800 (fax)william.haas@illinois.gov