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Regional Energy Efficiency News
2005
December
New Mexico Coalition Files Energy Efficiency Testimony
Gail Ryba, SWEEP’s New Mexico representative, filed testimony this
month before the New Mexico Public Regulation Commission (PRC) on behalf of the
Coalition for Clean and Affordable Energy (CCAE). The testimony supports a
settlement agreement that CCAE reached with Public Service Company of New Mexico
(PNM). This agreement includes a commitment by PNM to develop and propose
comprehensive electricity demand-side management (DSM) programs no later than
January 2007. Dr. Ryba’s testimony estimates the potential for electricity
savings and peak demand reduction from well-funded DSM programs in PNM’s service
area, and the economic benefits that such programs could provide.
Proposal for Natural Gas DSM Programs and Decoupling Filed
in Utah
Questar Gas Company, the natural gas distribution utility in Utah,
has proposed starting gas demand-side management (DSM) programs along with
decoupling its gas sales and fixed cost recovery from residential and commercial
customers. The latter proposal, termed a “conservation enabling tariff,” will
ensure that Questar is not financially penalized if conservation programs and
efforts by its customers are successful. The proposal is supported by
Utah Clean Energy, a non-profit group with whom SWEEP works closely; SWEEP
helped draft the DSM portion of the proposal. The proposal will now be taken up
the Public Service Commission of Utah.
SWEEP Works to Reduce Energy Bills for Residents in the
Southwest
In light of the recent increases in electricity and natural gas prices being
seen across the country, SWEEP is working closely with state officials in
Colorado, New Mexico, and Utah to see the implementation of energy efficiency
programs targeted to low-income households. To aid those efforts, SWEEP recently
completed a review of some of the leading “direct installation” energy
efficiency programs currently being implemented in the United States. Direct
installation energy efficiency programs are those in which simple low-cost
energy-saving measures are installed in low-income households. These programs
were common and successful in the early 1990s, but fell into disuse later in the
decade due to relatively low energy process.
November
New Energy
Efficiency Programs Announced by Xcel Energy
On November 16, Xcel Energy announced the details of new energy efficiency programs that will be offered to
its business customers in Colorado starting in January 2006. The five new
programs provide financial incentives and in some cases technical assistance to
help customers increase the energy efficiency of their lighting, cooling, and
motors systems. In addition, programs will promote energy efficiency in new
construction as well as low-cost efficiency improvements in existing mechanical
systems and controls. Click here for a summary of the new programs. Xcel will be
announcing other new energy efficiency programs in the coming months.
Howard Geller Co-Authors New IEA Report
SWEEP’s Executive Director Howard Geller and Sophie Attali recently prepared a
new report for the International Energy Agency, titled
Energy
Efficiency Policies and Programmes in IEA Countries: Learning from the Critics.
The report presents and evaluates the criticisms that are commonly leveled at
energy efficiency policies and programs, acknowledging those that have merit,
and debunking those that do not. Criticisms covered include the rebound effect
will erode most or all energy savings; most energy savings will happen anyway
due to ongoing technological advances or rising energy prices; the discount
rates used to justify energy efficiency policies and programs are too low;
energy efficiency policies and programs are much less effective than their
proponents claim; the market failures used to justify energy efficiency policies
and programs are mostly a myth; energy savings are impossible to meter and too
difficult or costly to estimate accurately; and energy efficiency is a failure
because energy use has been increasing in OECD nations. The report can be
downloaded from the IEA web site at
http://www.iea.org/textbase/papers/2005/efficiency_policies.pdf.
Southwest Legislators Receive SWEEP Energy Efficiency Award
SWEEP announced this month that Arizona State Representative Lucy Mason and
Nevada State Senator Randolph Townsend are the winners of its 2005 Leadership in
Energy Efficiency Awards. The awards are given annually to policy makers and
others who demonstrate a strong commitment to advancing energy efficiency in the
Southwest.
Representative Mason (R-Prescott) was honored for sponsoring and leading the
advocacy of Arizona House Bill 2390 – Energy Efficiency Appliance Standards. HB
2390 sets minimum energy efficiency standards on 12 products sold in Arizona
beginning in 2008. SWEEP estimates the standards will save businesses and
consumers over $650 million on their energy bills, and will reduce water
consumption in Arizona by 15 billion gallons during 2008-2020. Senator Townsend
(R-Reno) was recognized for sponsoring Nevada Assembly Bill 03, an omnibus
energy bill that allows electricity providers to receive credits towards
Nevada’s energy portfolio standards for energy savings from certain energy
efficiency measures; encourages greater energy efficiency in new or renovated
state buildings and buildings constructed by the private sector; and updates the
state’s building energy code. You can learn more about these two bills in
SWEEP’s 2005 Legislative Activities Report.
This year’s awards were presented at the Energy Efficiency Program Design and
Implementation Workshop, held this year in Phoenix and co-sponsored by SWEEP and
the Salt River Project.
October
SWEEP Releases New Report on Residential Lighting Programs
A new SWEEP report, Policies and Programs for Increasing the Adoption of
High-Efficiency Lighting in Homes in the Southwest, reviews experience with
residential lighting efficiency programs and provides recommendations to policy
makers and program administrators in the southwest region. It covers utility
programs, regional market transformation efforts, building codes, and other new
construction programs. The report demonstrates how well-designed programs can
greatly increase the purchase and use of compact fluorescent lamps (CFLs) and
other efficient lighting devices.
Nevada Utilities Increase Budgets for Energy Efficiency Programs
Recently-passed legislation adding energy savings from utility energy efficiency
programs to the state’s clean energy portfolio standards continues to have a
positive impact on utility demand-side management (DSM) efforts in Nevada. Both
Nevada Power Company and Sierra Pacific Power Company recently requested Nevada
Public Utility Commission approval of additional funding for DSM programs in
2005 and 2006. Combined, the utilities are now planning to spend $16.2 million
on DSM programs in 2005 and $30.5 million in 2006. The largest increases next
year will go for incentives on high efficiency air conditioners and ENERGY STAR®
appliances and lighting products (see table below). This is the second increase
proposed by the utilities since passage of Assembly Bill 3 this past June. To
learn more about the bill, read the
Nevada section of
SWEEP’s 2005 Legislative Report.
|
Sierra Pacific |
2005 |
2006 |
| Refrigerator Recycling |
$200,000 |
$700,000 |
| Energy Star Appliance & Fixture
Rebate |
$500,000 |
$850,000 |
| Commercial Incentive Program
(Sure Bet) |
$700,000 |
$700,000 |
| Sure Bet for Schools |
$450,000 |
$450,000 |
| Sure Bet for New Construction |
$300,000 |
$300,000 |
| High Efficiency AC Replacement |
$0 |
$625,000 |
| Ductwork and Insulation |
$76,000 |
$0 |
| Multi-Family Housing and Income
Limits |
$50,000 |
$0 |
| Integrating Education and
Weatherization Services |
$44,000 |
$70,000 |
| Partnering With Weatherization
Sub-Grants |
$272,000 |
$406,000 |
| Non-Profit Energy Grants |
$100,000 |
$100,000 |
| Building Support New
Construction |
$35,000 |
$35,000 |
| New Construction ENERGY STAR |
$35,000 |
$35,000 |
| Trade and Home Show Support |
$30,000 |
$30,000 |
| Web Support (Education) |
$30,000 |
$30,000 |
| Small Commercial Education |
$100,000 |
$100,000 |
| Irrigation Education |
$50,000 |
$50,000 |
| Energy Consultants/Auditors |
$155,000 |
$160,000 |
| Misc. Market and Technology
Trials |
$100,000 |
$100,000 |
|
Subtotal |
$3,227,000 |
$4,741,000 |
|
Nevada Power |
2005 |
2006 |
| Non-Profit Agency Grants |
$100,000 |
$100,000 |
| Res and Comm Builder Support |
$100,000 |
$150,000 |
| Energy Star for New Home
Construction |
$100,000 |
$150,000 |
| Trade and Home Show Support |
$30,000 |
$30,000 |
| Web Support/Changes |
$0 |
$0 |
| Small Comm Customer Education |
$150,000 |
$150,000 |
| Weatherization Sub-Grants |
$395,000 |
$395,000 |
| Market Survey for Low Income
Sector |
$0 |
$0 |
| Education/Weatherization
Services |
$25,000 |
$25,000 |
| Ductwork Installation and
Inspection |
$0 |
$0 |
| Multi Family Housing and Income
Limits |
$320,000 |
$320,000 |
| Market and Technology Trials |
$125,000 |
$625,000 |
| Low Income ACLM |
$0 |
$0 |
| Res ACLM |
$2,100,000 |
$2,200,000 |
| ACLM Two-Way Pilot |
$300,000 |
$0 |
| ACLM '04 Rebates |
$1,050,000 |
$1,400,000 |
| AC High Efficiency Rebates |
$4,700,000 |
$15,000,000 |
| Refrigerator Recycling |
$500,000 |
$1,215,000 |
| Energy Star Appliances & CFLs |
$700,000 |
$1,200,000 |
| Small Comm Cust Incentives (Sure
Bet) |
$1,600,000 |
$2,100,000 |
| Sure Bet for Schools |
$400,000 |
$400,000 |
| Comm New Construction (Sure Bet) |
$300,000 |
$300,000 |
|
Subtotal |
$12,995,000 |
$25,760,000 |
|
TOTAL |
$16,222,000 |
$30,501,000 |
September
WGA Energy Efficiency Task Force Releases Report
The Energy Efficiency Task Force of the Western Governors’ Association (WGA)
Clean and Diversified Energy Advisory Committee has released a draft report for
public review. The report examines the potential for more efficiency electricity
use and recommends what the 18 western states should do to increase energy
efficiency. Howard Geller, SWEEP’s Executive Director, is the chair of the
Energy Efficiency Task Force.
The WGA is examining the feasibility of and actions that would be needed to
develop 30,000 megawatts of clean energy in the West by 2015, ensure adequate
transmission, and increase energy efficiency 20 percent by 2020. The Clean and
Diversified Energy Advisory Committee was created to oversee this work. Comments
on the draft report, available at
www.westgov.org/wga/initiatives/cdeac/Energyefficiencydraft9-15.pdf, are due
by October 14, 2005.
August
Nevada Utilities Propose Demand-Side Management (DSM)
Program Expansion
On August 15, Nevada Power Company and Sierra Pacific Power Company
filed amendments to their DSM programs plans, increasing the combined budget for
2006 to $22.7 million. Additional funding is requested for high-efficiency air
conditioner incentives and promotion, air conditioner cycling, and second
refrigerator recycling. If the requests are approved by the Public Utilities
Commission of Nevada, it will result in Nevada’s two investor-owned utilities
spending about 0.8% of their retail revenues on DSM programs in 2006.
Legislation enacted this past June, which added energy savings from DSM measures
to Nevada’s renewable energy portfolio standard, is already spurring increased
support for DSM on the part of the utilities.
July
Arizona Governor Napolitano Promotes Energy Efficiency
In her July 13, 2005 Message of the Week, Arizona Governor Janet Napolitano
encouraged Arizona residents to save energy during the hot summer months.
Through her message, Governor Napolitano provided residents with a list of
energy-saving tips, and also declared the month of July as ENERGY STAR® month in
Arizona. Governor Napolitano has continually shown her support for energy
efficiency, most recently when she signed legislation, House Bill 2390, which
established minimum energy efficiency standards for 12 products not currently
covered by federal efficiency standards.
Nevada Updates Building Energy Codes at the State and Local
Level
Nevada has seen significant efforts to update building energy codes across the
state in 2005.
In northern Nevada, all jurisdictions in the Reno area, including the cities of
Reno, Sparks, and Carson City, and both Douglas and Washoe counties, have
adopted the 2003 International Energy Conservation Code (IECC) for all new
residential and commercial buildings. The new code became effective on July 1,
2005. In southern Nevada, the cities of Las Vegas, North Las Vegas, Henderson,
Mesquite, and Boulder City, as well as Clark County, have also adopted the 2003
IECC, effective August 1, 2005. And on June 17, 2005, Nevada Governor Kenny
Guinn signed into law a bill that applies the 2003 IECC to all jurisdictions in
the state that have not adopted a building energy code.
Between these local and state efforts, it is quite likely that all new
residential and commercial construction in the state must now be built to 2003
IECC standards.
For more information, see SWEEP’s study Increasing Energy Efficiency in New
Buildings in the Southwest: Energy Codes and Best Practices, at
www.swenergy.org/ieenb/index.html.
Arizona Public Service Company Unveils DSM Program
Proposals
The Arizona Public Service Company (APS) has submitted demand-side management
(DSM) program proposals to the Arizona Corporation Commission (ACC) in the wake
of a rate settlement agreement that calls for the utility to greatly expand its
DSM offerings. APS has proposed four DSM programs for its residential customers
and six for its non-residential customers, with a total utility budget of $48
million during 2005-2007. APS estimates the three-year effort will result in $68
million in net societal benefits. It is expected that the programs will be
reviewed and approved by the ACC in the next few months. SWEEP advised APS as it
developed the proposed programs.
June
SWEEP Launches New Energy Efficiency Website
SWEEP and the etc Group of Salt Lake City have announced the development of a
web-based information resource that will assist Utah businesses in reducing
their use of energy and lowering their energy bills. The
Energy Efficiency Guide for Utah Businesses has been developed with funding
from the Utah State Energy Office, the U.S. Department of Energy, and the U.S.
Environmental Protection Agency Region 8 office. Targeted to business and
facility owners and managers, the aim of the Guide is to point out opportunities
for Utah businesses to improve the energy efficiency of their buildings and
operations, and help businesses obtain assistance in identifying and
implementing energy efficiency projects.
Nevada Legislature Passes Omnibus Energy Efficiency and
Renewable Energy Legislation
In a special session held on June 7, the Nevada State Legislature adopted
Assembly Bill 03, a wide-reaching bill that, amongst others, allows electricity
providers to receive credits under the renewable energy portfolio standard for
energy savings from certain energy efficiency measures; encourages energy
efficiency in new or renovated state buildings as well as in buildings
constructed by the private sector; and updates the state’s building energy code.
Of particular note is the opportunity the bill provides to the state’s
electricity providers to meet a portion of Nevada’s clean energy portfolio
requirement through energy savings. The portfolio standard, which currently
ramps up to 15% of electricity sales by 2013, is increased to 20% of sales by
2015 in AB 03. The bill allows utilities to meet the standard through either
renewable energy generation or credits, or energy savings from efficiency
measures that the utilities provide financial support for. The contribution from
energy efficiency measures is capped at one-quarter of the total standard in any
particular year.
Click here to read more about AB 03
on SWEEP’s Nevada Legislative Page.
Colorado Governor Vetoes Natural Gas Conservation
Legislation
Colorado Governor Bill Owens has vetoed House Bill B 1133, killing a bill that
would have stimulated energy conservation programs by Colorado’s natural gas
utilities. This is the second energy efficiency bill adopted by the Colorado
General Assembly to be vetoed by Owens (see May 2005 to read about
Colorado House Bill 1162, Appliance Energy Efficiency Standards).
HB 1133 also directs the Colorado Public Utilities Commission (PUC) to
establish a cost recovery mechanism and provide a positive financial incentive
for natural gas utility energy conservation programs. SWEEP estimates that HB
1133 would have resulted in $700 million in net savings for households in
Colorado.
Click here to read more about HB 1133 on SWEEP’s Colorado Legislative Page.
May
Natural Gas Energy Efficiency Report Released
Western Resource Advocates, with assistance from SWEEP, has issued a
report on natural gas usage and energy efficiency potential. Using Natural Gas
More Efficiently: Saving Money and Protecting Our Western Way of Life argues
that stepped-up gas conservation efforts could both lower gas prices and reduce
pressure for gas exploration and production on environmentally-sensitive public
lands.
Colorado Governor Vetoes Appliance Energy Efficiency
Standards Legislation
Colorado Governor Bill Owens has vetoed House Bill B 1162, killing
the bill and preventing the appliance energy efficiency standards contained
within it from becoming law. Broad support for the energy efficiency
requirements was demonstrated by the Colorado legislature. The bill passed the
House Business Affairs and Labor Committee on a 12-1 vote and the Senate
Business, Labor and Technology Committee on a 6-1 vote.
As adopted by the Colorado General Assembly, HB 1162 sets minimum energy
efficiency standards for 14 products not currently covered by federal standards,
including torchiere light fixtures, exit signs, traffic signals, commercial
refrigerators and freezers, commercial clothes washers, and external power
supplies. Once the standards take effect in 2008, sales of non-compliant
appliances will be banned. Energy efficiency standards similar to HB 1162 have
been adopted recently by California, Connecticut, and Maryland.
SWEEP estimates that HB 1162 will save consumers and businesses about $535
million by 2030; lower water use by nearly 14 billion gallons during 2008-2020;
save 1.6 billion cubic feet of natural gas per year by 2020; and reduce peak
electricity demand by 218 megawatts by 2020.
SWEEP Executive Director Contributes to Colorado Energy
Magazine
SWEEP’s Executive Director Howard Geller contributed two articles to the
Spring/Summer 2005 edition of Smart Energy Living, a publication of the Colorado
Energy Science Center. Cool Those Summertime Blues provides tips for maximizing
the efficiency of home air conditioners, while Full of Hot Air: Natural Cooling
Technologies discusses the benefits of evaporative cooling. Learn more about the
Colorado Energy Science Center by visiting their website,
www.energyscience.org.
April
Arizona Governor Signs Appliance Efficiency Standards into
Law
Arizona Governor Janet Napolitano signed House Bill 2390, regarding energy
efficiency standards for appliances, into law on April 26, 2005. Sponsored by
Representative Lucy Mason (R-Prescott), HB 2390 sets minimum energy efficiency
standards for 12 products not currently covered by federal standards, including
torchiere light fixtures, exit signs, traffic signals, commercial refrigerators
and freezers, commercial clothes washers, and external power supplies. Once the
standards take effect in 2008, sales of non-compliant appliances will be banned.
Energy efficiency standards similar to HB 2390 have been adopted recently by
California, Connecticut, and Maryland.
SWEEP estimates that HB 2390 will save consumers and businesses about $800
million net by 2030; lower water use by 2.6 billion gallons per year by 2020;
save 1.9 billion cubic feet of natural gas per year by 2020; and reduce peak
electricity demand by 430 megawatts by 2020.
SWEEP Releases Two Duct System Reports
SWEEP has researched and published two new reports on duct systems in homes for
the Southwest. Duct Systems in Southwestern Homes: Problems and Opportunities
documents the energy waste, safety, and comfort problems associated with the
distribution systems of heating and air conditioning systems, and discusses a
number of practical techniques for resolving these problems. Policies and
Programs for Saving Energy through Enhanced Duct Systems reviews a number of
utility-conducted programs that have been successful in reducing much of the
waste associated with inefficient distribution systems, and also discusses
efforts in California and New York to adopt provisions in energy codes that will
result in more efficient duct systems in homes.
New Mexico Governor Signs Energy Efficiency Legislation
into Law
On April 5, New Mexico Governor Bill Richardson signed House Bill 619/Senate
Bill 644, known as the Efficient Use of Energy Act, into law. The Act will
require "public utilities to evaluate and implement cost-effective programs that
reduce energy demand and consumption," defining cost-effective as programs
passing the Total Resource Cost (TRC) test. It allows public utilities to
recover costs through a tariff rider for approved energy efficiency and load
management programs.
The Efficient Use of Energy Act is the work of the Utility Energy Efficiency
Task Force, appointed by Governor Richardson in August 2004. The Task Force
included representatives from public interest groups, industrial energy
consumers, investor-owned utilities, distribution cooperatives, AARP, and other
stakeholders. SWEEP was an active participant in the Task Force. The Task Force
drafted a consensus bill to advance utility energy efficiency programs in New
Mexico. The consensus bill was introduced in the both houses of the New Mexico
Legislature in January 2005.
Arizona Corporation Commission Supports Expanded DSM
Programs by Arizona Public Service Company
The Arizona Corporation Commission (ACC) approved on a 4-1 vote Arizona Public
Service’s first full rate case in 14 years. The approval includes $16 million
per year in demand-side management (DSM) program spending. SWEEP played an
intervenor role in the rate case, advocating for expanded DSM programs
throughout the process.
March
Phoenix City Council Adopts New Energy Code
On March 30, the Phoenix City Council adopted a new “Phoenix Building
Construction Code,” which includes the 2003 International Energy Conservation
Code (IECC) and its 2004 Supplement. The new code will provide minimum health
and safety standards for the construction of buildings in Phoenix. The City of
Phoenix currently enforces the 1997 Uniform Building Code, which is outdated and
no longer in publication. In July 2004, the City Council directed staff to
develop the new Phoenix Building Construction Code using the International
Codes. The effective date of the new building code is July 1, 2005.
Arizona Working Group on Renewable Energy and Energy
Efficiency Issues Report
The Working Group has presented a report to Governor Napolitano with
recommendations on what the Governor could do to advance energy efficiency and
renewable energy in Arizona. It includes recommendations related to building
codes, appliance efficiency standards, consumer education, and energy efficiency
in the public sector. Jeff Schlegel, SWEEP’s Arizona representative, was a
member of the Working Group. For details, see the
Governor's Report.
Arizona Utility Commission Supports Expanded DSM Programs
by Arizona Public Service Co.
The Arizona Corporation Commission (ACC) has issued a recommended
order in the Arizona Public Service Co. rate case. The order supports the $16
million per year demand-side management (DSM) program funding level and the
other details related to DSM programs in the settlement presented to the ACC.
SWEEP is an intervenor in this rate case and is one of the main advocates of
expanded DSM programs. For further details, see
APS Opinion and Order.
February
Nevada 2005 Energy Plan Issued
The Nevada State Office of Energy has issued its 2005 Status of
Energy in Nevada report. The report updates the state energy plan and includes
all of the high priority energy efficiency policy recommendations from the
Nevada Energy Efficiency Strategy prepared by SWEEP. The new report can be
downloaded from the Nevada Energy Office web site,
http://energy.state.nv.us/.
January
Governor Guinn Announces Nevada Energy Efficiency Strategy
Nevada Governor Kenny Guinn announced on January 12 that new policies for
increasing energy efficiency could save consumers and businesses in Nevada
nearly $5 billion over the next 15 years, according to the “Nevada Energy
Efficiency Strategy” released today by the Southwest Energy Efficiency Project
(SWEEP), the Nevada State Office of Energy (NSOE), and the Nevada Renewable
Energy and Energy Conservation Task Force (Task Force).
The “Nevada Energy Efficiency Strategy” considers 14 energy policy options for
reducing electricity and natural gas consumption through greater energy
efficiency. The options range from expanding utility energy efficiency programs,
to upgrading building construction energy codes, to adopting energy pricing
structures that will encourage reduced electricity demand when demand is
greatest. Seven of the policy options are designated highest priority.
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