Energy Efficiency Progress and Potential in Utah and the Southwest

1. Energy Efficiency Progress and Potential in Utah and the Southwest Howard Geller Presentation at the Utah Governor’s Energy Development Summit Salt Lake City, UT June 3-4, 2014

2. Electric Utility DSM Program Spending Trends in the Southwest

3. Seven Major Utilities in the Region: Electricity Savings Are on the Rise

4. Electricity Savings in the Region – Savings Build Up Over Time

5. What Are the Benefits?Rocky Mountain Power Example In 2013, RMP’s customers saved 1.4 billion kWh from EE measures implemented during 2007-13, a 6% reduction in electricity use RMP’s customers will realize ~$800 million in economic benefits due to 2007-13 programs Improving energy efficiency supports hundreds if not thousands of jobs in the local economy EE programs cut CO2 emissions by about 1.2 million metric tons in 2013 alone, and also reduced NOx, SO2, and mercury emissions thereby improving public health

6. So How Does Utah Stack Up? Energy Savings Trends by Utility

7. Key Utility Policies (1) Energy savings count towards clean energy standards, up to a limit

8. SWEEP’s $20 Billion Bonanza Study – Utah Results Implementing Best Practice utility energy efficiency programs in Utah could: Cut electricity use in 10 years by 20% Save households and businesses $1.7 billion Avoid 3 large (400 MW) power plants Support 3,000 new jobs in the state Cut air pollution and improve public health Reduce CO2 emissions and help meet new Clean Air Act standards with net economic benefits for consumers and businesses Reduce water use by 3 billion gallons per year

9. Utility Energy Efficiency Policy Recommendations for Utah Continue to ramp up RMP’s energy efficiency programs and move into the top tier of utilities achieving 1.5-2.0% savings per year Expand behavior change programs, add new programs for underserved customers such as small businesses, and implement Conservation Voltage Reduction (CVR) Consider allowing utilities to earn a profit when they help their customers save energy; e.g., a bonus equal to 5% of the net economic benefits resulting from the programs Ramp up EE programs at municipal utilities too

10. Building Efficiency Policy 2012 IECC model energy code adopted in Utah (for commercial bldgs), southern Nevada, and numerous local jurisdictions in Arizona NV, Phoenix, Tucson and other local jurisdictions have adopted the 2012 IECC for new homes CO and UT adopted bills in 2013 authorizing commercial building PACE—programs now under development CO adopted financial incentives for high performance new homes and home retrofits NM adopted income tax credits and NV property tax abatements for LEED Silver or better commercial buildings

11. Building Energy Efficiency Policy Recommendations for Utah Train builders and local code officials and start enforcing the new energy code Upgrade to the 2012 (or 2015!) IECC for new homes Implement the PACE legislation at least in Salt Lake City and County and other larger cities Consider commercial building energy benchmarking and labeling initiatives Maintain strong utility incentive programs for residential and commercial building retrofits

12. 2013 ACEEE State Energy Efficiency Scorecard

13. Highlights from the 2013 ACEEE Scorecard Utah reached 12th place in the nation in 2010 but dropped to 24th place in 2013 Utah ranked 9th in the country in terms of natural gas efficiency budget per customer in 2012 Arizona ranked 3rd in the country in terms of electricity savings as a fraction of retail electricity sales (1.66%) as of 2012—Best in the West! Arizona and Colorado received maximum scores for Energy Efficiency Resource Standards Let’s get Utah back into the top 20!

14. SWEEP:Dedicated to More Efficient Energy Use in the Southwest Resources available online at: www.swenergy.org Howard Geller, Executive Director 303-447-0078x1 hgeller@swenergy.org