Marin Clean Energy · Marin Clean Energy Single Family Sector Program Implementation Plan Agenda Item #10-Att. A_ EE Program Implementation Plans

Marin Clean Energy Single Family Sector

Program Implementation Plan

Agenda Item #10-Att. A_ EE Program Implementation Plans

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CONTENTS INTRODUCTION ..................................................................................................................................................... 2

MARKET CHARACTERIZATION ............................................................................................................................ 2

Energy Consumption .......................................................................................................................................... 2 Building Data ....................................................................................................................................................... 5 Barriers ................................................................................................................................................................. 6 Triggers ................................................................................................................................................................ 7 Key Market Actors ............................................................................................................................................... 7 Adoption and Penetration .................................................................................................................................. 7

Rebate and Technical Assistance Programs ................................................................................................ 8

Direct Install Programs ................................................................................................................................... 8

Financing Programs ........................................................................................................................................ 8

Behavioral Programs ....................................................................................................................................... 9

BUDGET ................................................................................................................................................................. 10

SINGLE FAMILY PROGRAM ................................................................................................................................. 10

Rebate and Technical Assistance .................................................................................................................... 11

Advanced and Basic Home Upgrade Program .......................................................................................... 11

Single Measure Rebates ............................................................................................................................... 11

Zero Net Energy (ZNE) ................................................................................................................................. 11

Door to Door Residential Direct Installation Program .............................................................................. 12

Behavioral Strategy ........................................................................................................................................... 12

Schools Program ........................................................................................................................................... 12

Home Information and Automation Program ............................................................................................ 12

Community Engagement and Gamification .............................................................................................. 13

Financing ............................................................................................................................................................ 14

Green Home Loans ....................................................................................................................................... 14

Property Assessed Clean Energy (PACE) ................................................................................................... 14

IMPLEMENTATION ELEMENTS .......................................................................................................................... 15

Marketing and Outreach .................................................................................................................................. 15 Key Partners ....................................................................................................................................................... 15 Health and Safety .............................................................................................................................................. 16 Quality Assurance and Quality Control ........................................................................................................... 16

MEASURING SUCCESS ........................................................................................................................................ 17

Logic Model ....................................................................................................................................................... 17 Performance Metrics ......................................................................................................................................... 17 Evaluation, Measurement and Verification (EM&V) ....................................................................................... 17


TABLE OF TABLES Table 1. Budget Summary .................................................................................................................................... 10 Table 2. Cost Effectiveness Summary.................................................................................................................. 10 Table 3. MCE Green Home Loan Terms and Conditions .................................................................................. 14 Table 4. Key Partners ............................................................................................................................................ 16

TABLE OF FIGURES Figure 1. Distribution of California Households by Ownership Structure. ........................................................ 3 Figure 2. Average electricity consumption across MCE service territory .......................................................... 3 Figure 3. Electricity and Natural Gas Usage by End Use (Statewide)................................................................. 4 Figure 4. Estimated Market Penetration of Selected Energy Star Appliances .................................................. 4 Figure 5. Residential Building Vintage in MCE Service Territory ........................................................................ 5 Figure 6. Single Family Home Size across MCE Service Territory ...................................................................... 6 Figure 7. Logic Model ........................................................................................................................................... 17


1 MCE Single Family Sector PIP

ACRONYMS The following acronyms are used throughout the document:

AMI - Advanced Metering Infrastructure BPI - Building Performance Institute CAS - Combustion Appliance Safety CRM - Customer Relationship Management DG - Distributed Generation DR - Demand Response EE - Energy efficiency EM &V - Evaluation, Measurement and Verification EUC - Energy Update California EVs - Electric Vehicles HOA - Home Owners Associations HUR - Home Utility Report HVAC - Heating, Ventilation and Air Conditioning IDSM - Integrated Demand Side Management PACE - Property Assessed Clean Energy QA - Quality Assurance QC - Quality Control SPOC - Single Point of Contact TRC - Total Resource Cost ZNE - Zero Net Energy



Implementation Plan: Single Family

Introduction Marin Clean Energy (MCE) has identified the single family residential sector as an important area for tailored and strategic energy efficiency program offerings. For three years MCE has been running a web based behavioral program, which combines traditional home utility report mailers with online web tools to encourage customers to develop an Action Plan for their home. MCE has also had an on-bill repayment program for single family customers, a program offered in partnership with a local financial institution. MCE seeks to expand these offerings to include a more comprehensive suite of services, including technical assistance, rebates and incentives, advanced web-based tools and software, plus behavioral campaigns and competitions. Additionally, zero net energy design services and comprehensive home upgrades will be offered to interested residential customers. A core tenet of the program is delivering a seamless platform for integrating opportunities across energy efficiency (EE), demand response (DR), distributed generation (DG), renewables, electric vehicles (EVs), and water efficiency. Collectively, these opportunities are called integrated demand side management (IDSM). The single family program will maximize customer and program benefits by offering a flexible yet structured approach to IDSM. The full-service approach will provide technical assistance, rebates, financing, assistance finding contractors, quality assurance, and project management. MCE is committed to providing excellent customer service and satisfaction through dedicated staff resources and tools.

Market Characterization MCE has analyzed energy consumption, building data, barriers, triggers, key market actors, and energy efficiency adoption to better understand the opportunities that exist within the single family sector.

Energy Consumption Statewide, approximately 60 percent of households own their homes, with the remaining approximately 40 percent renting. However, the percentages essentially flip flop for low-income households, where approximately 60 percent rent and 40 percent own. MCE’s single family program is structured to assist both renters and owners. Single family homes represent 80% of MCE’s customer accounts and about half of overall energy usage in MCE’s service territory. There is significant variety in the single family sector, and developing a program to serve this sector requires having a solid understanding of how energy is used in our service territory.



Figure 1. Distribution of California Households by Ownership Structure.1

Across MCE’s service territory, there are substantial differences in electricity consumption per home per year. Socio-economic, dwelling, and appliance factors contribute to these differences2. Figure 2. Average electricity consumption across MCE service territory

Statewide, lighting represents the largest share of residential electricity end-use, followed by refrigerators and freezers, then plug loads. For residential natural gas end-use, space and water heating are the largest consumers, followed by cooking. 1 California Public Utilities Commission, California Long Term Energy Efficiency Strategic Plan, September 2008. Available at http://www.cpuc.ca.gov/NR/rdonlyres/D4321448-208C-48F9-9F62-1BBB14A8D717/0/EEStrategicPlan.pdf. Accessed July 17, 2015 2 Rory V. Jones, Alba Fuertes, Kevin J. Lomas, The socio-economic, dwell and appliance related factors affecting electricity consumption in domestic buildings, Renewable and Sustainable Energy Reviews, Volume 43, March 2015. Available at http://www.sciencedirect.com/science/article/pii/S1364032114010235. Accessed July 17, 2015.

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Figure 3. Electricity and Natural Gas Usage by End Use (Statewide3)

In single family homes many small decisions, such as buying a television, impact electricity usage. Fewer bigger decisions, such as changing a water heater, impact gas usage. Plug loads are the most difficult end use to control, as there is significant variety among the types of devices that can be plugged into the wall. The United States Environmental Protection Agency (US EPA) labels certain efficient appliances with the Energy Star brand to help consumers navigate purchasing choices. Figure 4 shows adoption rates for selected Energy Star rated appliances. There is large remaining potential in appliances like computers, air conditioners, clothing washers, and refrigerators, to name a few. The California Energy Commission controls appliance energy use through Title 20 regulations, but can only target so many technologies.4 This data indicates that strategies focusing on controlling end use, for example with automation or information, will be key to managing this fast growing source of consumption. Figure 4. Estimated Market Penetration of Selected Energy Star Appliances5

3 California Public Utilities Commission, California Long Term Energy Efficiency Strategic Plan, September 2008. Available at http://www.cpuc.ca.gov/NR/rdonlyres/D4321448-208C-48F9-9F62-1BBB14A8D717/0/EEStrategicPlan.pdf. Accessed July 17, 2015. 4 California Code of Regulations, Title 20. Public Utilities and Energy. 5 Energy Information Administration. Adoption of Energy Star Equipment. Accessed July 3, 2015.



Building Data The vast majority of the residential building stock in MCE’s service area was built between 1950 and 2000, with approximately 50% of the buildings being built between 1950 and 1975. The exception is in Benicia where the majority of residential buildings were built between 1975 and 1999. Title 24 was established in 1978 by the California Energy Commission and set regulations regarding energy conservation standards for new residential and new non-residential buildings.6 The pre-1978 building stock was not built with these set conservation standards. Older single family buildings present both an opportunity in that there is likely room for improvement but also a challenge as there will be costs associated with bringing those buildings up to code. Figure 5. Residential Building Vintage in MCE Service Territory

The majority of single family homes are between 800 and 1,600 square feet, as illustrated by Figure 6. In fact, 65% of homes in Richmond, El Cerrito and San Pablo fall within that range. Meanwhile, in Benicia, Marin, and Napa, over 50% of homes are more than 1,600 square feet. This data provides some insight into demographics that can be useful when tailoring strategies to target residential consumers across MCE’s diverse service territory. For example, larger homes will likely be good opportunities for improvements in space conditioning and building envelope relative to smaller homes.

6 California Energy Commission. Conservation Division. Regulations Establishing Energy Conservation Standards for New Residential and New Nonresidential Buildings. July 26, 1978. Available at http://www.energy.ca.gov/title24/standards_archive/1978_standards/CEC-400-1978-001.PDF, accessed July 15, 2015.

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Residential Building Vintage across MCE Service Territory

Richmond, El Cerrito, and San Pablo Marin Napa Benicia



Figure 6. Single Family Home Size across MCE Service Territory

Barriers There are several barriers that may prevent the single family sector from fully taking advantage of energy efficiency opportunities. These barriers include: Financial Constraints. Customers may not have sufficient funds to cover the costs of upgrades, or

may be uncertain as to the length of their tenure in a home. Customers may not be aware of financing options to overcome first cost barriers. Some customers may not qualify for traditional financing tools.

Split Incentive Issue. In renter-occupied homes, it can be challenging to encourage energy efficiency upgrades when the tenant pays for electricity, but does not own the home.

Contractor Limitations. There are a limited number of contractors with technical knowledge of integrated and comprehensive demand-side management. Additionally, there is a scarcity of contractors that also have the business, sales, and project management skills needed to convert lead generations and complete projects. Additionally, there is the perception among some contractors that rebate programs are time and labor intensive. This poses a significant barrier, as contractors prefer to reduce their pricing instead of referring projects to existing rebate programs.

Baseline Challenge. Since the Title 24 code baseline has increased considerably, the opportunities to bring existing buildings above the baseline is expensive. Furthermore, available incentives are dwindling.

Visibility of Improvements. Energy efficiency improvements are not as visible as other clean energy strategies, such as rooftop solar panels. As a result, efficiency improvements may not increase property values in the way that other clean energy strategies do.

Lack of Awareness. Customers may not realize the potential benefits of energy efficiency upgrades in general and the benefits of MCE’s program in particular, and may be concerned by the uncertainty in achievable savings. Customers may be overwhelmed by the many energy and water programs available.

MCE’s single family program is designed to address these barriers by reaching customers at trigger points and offering tailored solutions.

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Single Family Home Size across Service Territory

Benicia Richmond, El Cerrito and San Pablo Marin Napa



Triggers Trigger points are moments of opportunity when the likelihood of engaging customers in an energy efficiency program is highest. Trigger points for single family customers include: Appliances and Equipment Failure. Convincing customers to upgrade to more expensive but highly

efficient equipment can be challenging to do until the equipment is at or near failure, especially for capital-intensive and long-lived equipment. Proactively educating contractors and customers about rebates and incentives and making programs easy to access can help ensure customers are informed and ready to replace equipment with more efficient alternatives.

Change in Law or Regulation. MCE will use upcoming or anticipated changes in codes, standards, and regulations as a trigger point to motivate single family customers to act on resource conservation.

Resident and Owner Turnover. Periods of change, such as a turnover in renters, or owners of a home, present an opportunity to perform home retrofits with minimal disruption.

MCE’s objective is to utilize these trigger points to effectively engage customers in energy efficiency measures. To achieve this, MCE must identify and understand the entities that influence this sector.

Key Market Actors There are many entities that influence the single family sector. It is important that MCE understand the role that each entity plays and how this can affect efforts to promote energy efficiency: Local Governments. Local governments set local building and zoning laws, issue permits, and

provide information to local residents and property owners. Local governments have a pre-existing relationship with their constituents and are attuned to the community’s opportunities, needs, and challenges. MCE will partner with local governments to conduct outreach to support implementation of its single family program.

Property Owners and Renters/Home Owners Associations (HOA). Property owners are the primary decision makers and funders of expenditures on home improvements, such as energy efficiency improvements. MCE must engage them in order to accomplish projects and will benefit from building lasting relationships.

Contractors/Builders/Designers/Architects/Engineers. Contractors, builders, designers, and architects are key influencers of home owners and make referrals to energy efficiency programs. These key players often hold significant delegated authority regarding the energy efficiency and capital improvements to properties. MCE will provide targeted training opportunities to these players to create a shift in the building industry to better incorporate energy efficient decision making. They will also be integral to driving participants to the program.

Retail Stores/Equipment Manufacturers. Manufacturers and retail stores can use stocking and display practices to influence consumers’ purchasing decisions. MCE will work with vendors to optimize these practices for greater adoption of energy efficient equipment.

MCE tracks key market actors in order to best understand policy opportunities and challenges, and the impact of these entities on a customer’s energy efficiency decision-making.

Adoption and Penetration Before implementing single family program strategies, MCE evaluated current adoption and penetration of energy efficiency programs to identify opportunities and determine market gaps.



55 percent of residential buildings were constructed before the state’s landmark building standards were established.7 This indicates that there are many opportunities for improving efficiency. Furthermore, there is the market demand for efficiency. According to the National Association of Realtors, 46 percent of new homebuyers cite energy efficiency as a primary consideration in their purchasing decisions.8 Existing programs fall into four categories: (1) rebate and technical assistance programs; (2) direct install programs; (3) financing programs; and (4) behavioral programs.

Rebate and Technical Assistance Programs Some existing single family residential programs largely focus on providing direct options for consumers. Customers are given a choice between light touch rebate offerings redeemed through mail-in receipts, or are invited to participate in more comprehensive measures through the Home Upgrade program. Some programs provide indirect or “upstream” rebates directly to the manufacturer so the product is competitively priced in stores. One of the largest residential energy efficiency efforts in California is Energy Update California (EUC). Within Marin (not the full MCE service territory), over 230 homes participated in the Home Upgrade program (over 70 basic and over 160 advanced projects) between 2013 and 2015. EUC provided numerous customer touch points and opened the door for future engagement. Another large residential energy efficiency effort is the California Statewide Residential Energy Efficiency Program, which offers rebates and incentives for a wide range of appliances and whole house programs to single family residents (EUC is included as a component of the overarching program.). PG&E reported the following 2013-2014 program savings: 149,983 MWh for Energy Advisor Program, 29,700 MWh for Energy Upgrade California, 7,233 MWh for new construction, and 7,233 MWh for California Advanced Homes program. These numbers represent savings recently achieved, which therefore reduce the available energy efficiency opportunities in those homes. It’s important to note that the data is across all of PG&E’s service territory, so is more insightful on relative savings potential than remaining savings opportunities within MCE territory.9

Direct Install Programs MCE currently offers direct install services for single family residences. Rising Sun, which provides youth training and basic home upgrades, reached around 5,000 Marin homes between 2006 and 2014. The program can serve as a gateway to greater home energy upgrades.

Financing Programs Financing can allow homeowners to mitigate the first cost barrier, or the need for significant amounts of capital availability at the beginning of a project, by spreading the cost over time. MCE currently offers on-bill repayment programs to single-family homeowners seeking to undertake efficiency improvements on their homes. MCE also facilitates access to Property Assessed Clean Energy (PACE) financing programs. Additionally the CPUC has directed the investor owned utilities to launch financing pilots which are expected to be available to customers beginning in 2015. MCE has only had one participant in the existing on-bill repayment program, and hopes that expansion to single measures will increase participation. During the 2013-2015 program cycle, the California FIRST PACE program was authorized in most of MCE’s service territory. Participation data for Marin shows that

7 California Energy Commission. Draft Action Plan for the Comprehensive Energy Efficiency Program for existing Buildings. Page 1. Available at http://www.energy.ca.gov/2013publications/CEC-400-2013-006/CEC-400-2013-006-D.pdf, accessed July 2, 2015. 8 National Association of Realtors. “Selling Green” Pocket Card. Available at https://store.realtor.org/product/brochure/selling-green-pocket-card, accessed July 3, 2015. 9 California Public Utilities Commission. Statewide Residential Programs 2013-2014. Available at http://www.cpuc.ca.gov/NR/rdonlyres/3DE5A49C-9E9C-4945-AD78-161338282638/0/201314ResidentialFactSheet.pdf, accessed July 2, 2015.



there have been 183 residential PACE applications received by the California FIRST program, with 58 projects funded and/or under construction (as of Q2 2015).10

Behavioral Programs Behavioral programs are offering an increasingly untapped area of energy conservation activities. Energy reports which provide an overview of a home’s energy usage relative to that of a neighbor’s have been proven effective at decreasing consumption as much as 1.8%.11 Emerging devices that communicate a home’s energy usage to a web-based dashboard have increased the ability for homeowners to understand and control their energy usage. Pilots have been explored in this area with increasing frequency throughout the past few years in California. MCE has a single family program that combines energy reports with a sophisticated web-based tool to inspire customers to take action to reduce energy use. Customers can search for contractors, rebates, and financing through MCE’s MyEnergyTool. MCE has also explored residential demand response (DR) programs, leveraging existing web technology to streamline access to DR programs. MCE seeks to integrate and expand on these offerings in 2016 and beyond. MCE’s single family program has delivered Home Utility Reports, which present customers with how their energy usage compares to that of their neighbors, to more than 12,500 customers in the MCE service territory. These reports are supplemented with an existing web tool designed to motivate customers to take action and connect them with resources and more information. To date, 2,325 users have registered on the site and over 1,600 have developed Action Plans to save energy. MCE supplemented its web tool with a schools program in 2013 and 2014, designed to educate youth about energy conservation, using the web tool as supporting material. MCE, in partnership with Strategic Energy Innovations and Planet Ecosystems, Inc., was able to reach 2,025 students through this campaign. Based on the market characterization analysis, MCE has developed, improved upon, or leveraged the single family program offerings and projected a budget for the first four years.

10 CaliforniaFIRST Activity Summary. July Q2 Report, Marin. Received via email from Jonathan Kevles at Renew Financial. 11 Program savings estimates are unverified net savings estimates based on early billing analysis results. These estimates are in alignment with EM&V findings from similar programs across the country, such as the following DNV-GL, KEMA, Opinion Dynamics, and SMUD reports:

DNV-GL. Home Electricity Report Program 2013 Impact Evaluation. Prepared for Seattle City Light. July, 2014.

KEMA, Inc. SDG&E Home Energy Reports Program. August 23, 2013. Opinion Dynamics, Navigant Consulting and Evergreen Economics. Massachusetts Cross-Cutting Behavioral

Program Evaluation Integrated Report. Prepared for Massachusetts Energy Efficiency Advisory Council & Behavioral Research Team. June 2013.

Sacramento Municipal Utility District. Home Evaluation Program: Impact and Persistence Evaluation Report. Available at http://www1.integralanalytics.com/files/documents/related-documents/FinalSMUDHERSEval2012v4.pdf, accessed August 4, 2015.



Budget The proposed budget for the first four years of the single family program is as follows: Table 1. Budget Summary

Budget Category Year 1 Year 2 Year 3 Year 4

Administrative $117,204 $169,868 $186,638 $186,638

Marketing $165,785 $135,785 $135,785 $135,785

Direct Implementation $641,903 $804,534 $883,271 $883,271

Incentives $289,655 $609,950 $675,438 $675,438

Evaluation, Measurement and Verification (EM&V) $46,984 $68,050 $74,758 $74,758

Total $1,261,541 $1,788,187 $1,955,890 $1,955,890

The expected total resource cost (TRC) and estimated savings are detailed below:

Table 2. Cost Effectiveness Summary

Single Family Program MCE’s single family home program is designed to provide a positive customer experience and drive market transformation. Program strategies are integrated and delivered in a seamless fashion by a single point of contact (SPOC), who will serve as a facilitator and customer advocate. Non-energy benefits are an important component of each of the strategies. For example, MCE recognizes the importance of emphasizing benefits like aesthetics, reduced energy costs, and greater comfort. Emerging technology platforms provide customers with a level of information and control related to their energy usage. For program administrators, these tools can also allow for a more powerful interaction with the customer. MCE will pair sophisticated customer relationship management software with home dashboard and data analytics platforms. This will help MCE provide targeted outreach according to demographics and energy savings opportunities and open the door to integration between demand side resources. MCE proposes to offer the following four program strategies during the next program cycle: (1) rebate and technical assistance strategy; (2) direct install strategy; (3) financing strategy; and (4) behavioral

Sector Summary Year 1 Year 2 Year 3 Year 4 TRC 1.01 1.73 Budget $1,261,541 $1,788,187 $1,889,993 $2,021,786 Estimated Savings 814,373 kWh

28,703 therms 1,464,633 kWh 67,684 therms

1,944,330 kWh 96,058 therms

2,364,725 kWh 116,828 therms



strategy. To help ensure a successful outcome, MCE proposes a phased rollout, focusing first on building up existing programs and high-potential strategies.12

Rebate and Technical Assistance MCE plans to offer rebates and financial assistance to single family customers in its service territory. As single-family customer accounts make up 88% of total MCE accounts (and about 50% of total consumption), this is an area where MCE plans to offer robust services. The MCE single-family program strategy involves offering solutions for the widest range of customers possible. For those customers ready to perform significant home upgrades, MCE proposes to partner with existing providers for the Home Upgrade program. For customers who are not yet prepared to do either the Home Upgrade of the Advanced Home Upgrade program, MCE is offering a more streamlined single measure rebate program. Zero Net Energy design assistance and incentive kickers will also be offered. Financing will be offered to all program participants, either through MCE’s existing on-bill repayment program or from one of the other programs available in MCE’s service territory. MCE also plans to support these programs with accessible and engaging outreach and educational tools available on the web and at its physical storefront.

Advanced and Basic Home Upgrade Program MCE proposes to partner with existing program administrators (BayREN for Basic Home Upgrade; Build It Green for Advanced Home Upgrade) to provide advanced and basic comprehensive home upgrade rebates and technical assistance. MCE proposes the development of a structure for shared attribution to account for its marketing, outreach, or financing efforts that may contribute to greater participation.

Single Measure Rebates Not every residential customer is able or willing to consider a comprehensive upgrade to his or her property. However, providing meaningful rebate solutions for whatever project the applicant may be considering will help to ensure a positive customer experience. Additionally, customer touches allow MCE to establish a relationship with a customer, which can grow and build over time. MCE anticipates that, as customers have good experiences and have their needs met through the MCE program, they will be more willing to consider further upgrades down the road, for example as their HVAC equipment nears replacement. This offering may be valuable for tenants who do not have access or decision-making control over building envelope related measures but still seek to save money on bills. MCE will offer a suite of one-off rebates for measures including lighting, HVAC, insulation, and efficient appliances. There will be higher rebates for measures that offer benefits across multiple resources (water-energy, for example). MCE’s goal is to provide a positive experience for customers who have specific and discrete needs, and to use this entry point to establish an on-going relationship with the customer. For building envelope measures or HVAC replacement measures the MCE SPOC will first make an attempt to up sell the customer on the Basic Home Upgrade strategy. This strategy will be integrated with the MCE web tool. The MCE web tool contains an existing Equipment Marketplace where customers can review different appliances and can even purchase these appliances online. For those products for which MCE offers a rebate, the rebate can be instantaneously provided to the customer upon completion of the purchase.

Zero Net Energy (ZNE) The California Public Utilities Commission and the California Energy Commission have reinforced a commitment to increased development of ZNE buildings in California. For the purposes of this program offering, MCE defines a ZNE building as one that annually produces at least as much energy on site as it consumes. To achieve statewide carbon mitigation goals, ZNE buildings will be crucial, and deep retrofits

12 High-potential strategies include those for which there is more energy savings opportunity in the MCE service territory. For example, there is less new construction overall in MCE’s service territory, and hence retrofit programs will be emphasized before new construction.



for existing buildings will be necessary, while significant design and technical assistance will be required for new construction. MCE’s approach to ZNE buildings will be two fold. Design assistance will be offered to local area architects and contractors to assist in integration of ZNE strategies at the onset of the project. MCE has the benefit of a great deal of local interest and capacity in the ZNE building realm, and MCE will partner with local organizations to offer technical and design assistance for ZNE retrofits. MCE will also work with these organizations to develop a skilled workforce and advocate for codes and standards that facilitate the implementation of projects. The SPOC will also have a very strong role to play in ZNE projects, as these projects are by definition integrated. The SPOC will facilitate application to multiple funding streams to access renewable energy incentives, EV incentives, and to encourage ZNE projects to also incorporate water and energy saving measures as well. For ZNE retrofit projects, MCE will offer additional incentives to customers that want to achieve ZNE and already undertaking home upgrade projects. Incentives will be provided on the basis of percent improvement over the modeled baseline of the home upgrade project. This will be an add-on to the existing Advanced Home Upgrade program. Projects will still be required to complete a pre and post installation verification, and will be subject to the same QA/QC procedures outlined for that program, including demonstration of successful permitting. In addition, contractors may be required to agree to specific installation standards for emerging technologies. ZNE for new construction will primarily involve front-end work with building professionals to ensure the ZNE strategies are integrated at the earliest possible stage of the project. As stated above, MCE will work with local organizations to offer technical and design assistance in accomplishing these projects. Incentives will be offered on an above code basis. Contractors will be required to demonstrate compliance with codes and standards, and may be required to agree to minimum installation standards for specific emerging technologies to ensure proper installation.

Door to Door Residential Direct Installation Program MCE proposes to build off of the successful door to door residential direct installation campaigns. Emphasizing youth vocational services and providing free installation and education for residential households provides a win-win situation. This activity will be co-funded between marketing and outreach as well as direct implementation, but will be used primarily as a lead generation strategy to expose residential households to energy conservation and encourage them to implement more energy savings measures over time.

Behavioral Strategy Behavioral savings are an increasingly important component of energy efficiency programs. Some customers need an initial introduction to energy savings concepts before they are willing to consider investing money in performing energy upgrades. There are also certain energy end uses that are more difficult to control through traditional rebate programs, such as plug loads. MCE seeks to expand its existing behavioral program offerings in 2016 and beyond.

Schools Program MCE has found that working with local schools is an important strategy for educating youth and parents alike about the value and benefits of energy and water conservation. MCE will continue to work with local schools to deliver curriculum based on energy savings. MCE will continue to provide in-class instruction, take home assignments, and school assemblies in order to raise energy awareness, encourage families to perform online energy assessments, and create energy actions plans. MCE will also seek to leverage its existing web tool to provide a platform for competitions between schools and/or classrooms around energy savings accomplishments.

Home Information and Automation Program The information and automation strategy aims to empower customers with a deeper understanding of their energy consumption and habits, and provide tools that enable energy savings at a level of engagement that matches the customer’s style.



The logic behind MCE’s information strategy is that knowledge is power, and people are motivated by their peers. Meanwhile, home automation provides a promising way to integrate with other demand side management resources, and possibly provides avenues for limiting plug load energy use. Providing insights into energy consumption and benchmarking peers against one-another (via web-based tools and home utility reports) is enough to motivate many consumers to take action. By employing innovative social norming and marketing tactics that help people emotionally connect to energy savings and home performance, MCE anticipates reaching an even greater number of customers with its energy efficiency message. Connecting all of these tools to automate energy efficiency actions in an engaging platform takes the customer experience and savings opportunities to another level by reducing the need for individual customer interventions over time. The strategy will offer multiple avenues for educating residential single family customers on how they use energy in their homes and ways they can save. The program will continue to offer our current Home Utility Report (HUR) mailers and energy web tool offerings while looking for ways to expand into Home Automation Tools and home dashboard technologies. MCE’s Home Utility Report (HUR) mailers will be sent to a targeted group of MCE customers in the higher usage tiers. While these mailers alone have been shown to achieve on average approximately 2% energy savings,13 MCE will also use the mailers to drive customers to the web tool where they can find additional resources to help and motivate them to save energy in their homes. These tools include a searchable contractor database, information on financing, and an online equipment marketplace to compare and purchase efficient appliances. The web tool will use publicly available housing data, energy usage information, and any customer-provided data to develop a set of customized energy saving actions. The web tool will also guide users to resources (e.g., rebates, contractors, financing) that can help them take the recommended actions. MCE will expand upon its current offerings to provide customers with a dashboard to track project progress and participation in other demand management programs (e.g., automated demand response using remotely controllable smart thermostats and load control devices). Where possible, MCE will explore options for integrating the web tool into home displays, mobile phones, and home automation tools.

Community Engagement and Gamification MCE will work closely with community groups and local schools to recruit volunteers for geographically targeted campaigns encouraging families to implement energy saving actions and compete for rewards. This program will use the web tool and utility records to track the progress of groups. Participants will receive HUR-like newsletters on their progress and competitive standing throughout the campaign. MCE will also work with climate action related local groups to keep members engaged throughout the competition. Participants will compete for free energy efficient equipment. Middle and high-school students from participating households will be eligible to participate in a photo and essay contest about their experiences with energy efficiency. The winning entries will be put on display in MCE’s Energy Efficiency Demonstration Room and the winning students will receive scholarships. All participating families will be required to create Action Plans in order to register for the program. This platform may also enable group purchasing for the residential sector. Through these campaigns, participating households that would like to pool resources to contribute to a single measure, for example home upgrades, may be able to combine purchasing power and receive better costs. MCE will facilitate this aggregated purchasing on behalf of interested community groups.



Financing MCE will help customers navigate the landscape of financing offerings available and encourage them to participate to the extent that it facilitates energy efficiency upgrades. MCE’s web tool offers important resources for homeowners and program participants considering financing. The web tool allows those who have completed an Action Plan, a plan identifying water and energy saving strategies that are unique and specific to the home, to compare which financing products might be available to support the measures in the Action Plan. A matrix table offers side-by-side comparisons of the different lending products, and links to online applications or websites for more information. As other statewide financing tools roll out, MCE will work to provide information on these tools as well as on the Green Home Loan program. Specific financing strategies are described below.

Green Home Loans In partnership with First Community Bank, MCE currently provides eligible customers with a low interest loan they can repay on their monthly utility bill. MCE will continue offering this product to comprehensive home upgrade projects, and expand to include single measure rebate projects as well. The existing loan terms and conditions are detailed below and will still apply, but will disqualify some projects. However, MCE anticipates that offering financing for single measures will increase overall access and allow MCE to up sell some of these projects to the compressive packages. Table 3. MCE Green Home Loan Terms and Conditions

Interest Rate 5% APR

Loan Terms 5-10 years

Loan Amount $2,500-$30,000

Minimum FICO Score 640

Eligible Projects Single family properties participating in an MCE rebate program

Property Assessed Clean Energy (PACE) PACE is a tool where property owners can voluntarily opt into a tax assessment, which is then tied to the property. Advantages of PACE include transferability with the property, helping to mitigate concerns over payback period and average tenancy in a residential building, and the fact that it is paid on property taxes. PACE financing also enables investment in renewable energy and water savings improvements, and in some cases can be a source of financing for new construction projects.14 Currently MCE is working with the County of Marin to establish an Open Market PACE model where any provider who can agree to a minimum set of best practices would be eligible to operate in Marin. MCE will seek to work with other parts of its service territory to expand this approach to PACE. MCE maintains a financing marketplace web portal where information about all available financing products is presented to the customer. Additionally, SPOCs will refer customers directly to PACE providers.

14 Some PACE providers utilize SB 555 (2012) as the enabling legislation; this follows the Mello-Roos style assessment (rather than the Streets and Highways Code assessment enabled under AB 811 [2008]), which can be used for new construction.



Implementation Elements Across the single family program offerings, MCE will utilize these implementation strategies to help customers achieve energy reductions.

Marketing and Outreach MCE will undertake the following activities to market the program and promote awareness of energy efficiency and resource conservation in its service territory: Single Point of Contact (SPOC). The SPOC will manage relationships with customers in the single

family program. MCE’s Customer Relationship Management (CRM) software organizes data for lead generation and follow-up. The SPOC will use this data to engage existing participants in additional energy efficiency opportunities, converting leads into active and completed projects.

Targeted Outreach. MCE will use energy usage data to conduct outreach campaigns at properties with high energy consumption. These campaigns will be aligned with trigger points. MCE will also use property specific data, such as assessor records and advanced metering infrastructure (AMI) data, to develop pre-assessment opportunity reports to present to decision makers. This information will be a powerful tool for the SPOC to use in communicating with customers about opportunities in their home and benefits of the program.

Messaging. MCE will produce data-driven, segment-specific marketing materials to distribute at events, on MCE’s website, and via partner channels. MCE’s energy efficiency message will also be distributed via print ads, television, and radio channels. There will be a broad social media effort. MCE will develop its own YouTube channel, combining original content with Energy Upgrade California resources and other online videos on energy efficiency and renewable energy. This enables the community to begin associating MCE as a resource for energy efficiency information.

Recognition Campaigns. MCE will host award ceremonies conducted by an emcee or local luminary to recognize customers with the greatest energy savings and contractors who provide the most customer leads or complete the greatest number of projects. These local energy efficiency leaders will be given free publicity on the MCE website and may be featured in MCE’s Energy Efficiency Demonstration Room. MCE will also work to develop labeling campaigns for customers who have completed projects, such as lawn signs, window stickers, and other public recognition.

Energy Efficiency Demonstration Space. MCE will develop a room in its existing facility into a demonstration space where members of the public can learn about resource conservation options. This room will combine rotating interpretive displays on energy efficiency and resource conservation, with a meeting space that can be used by local groups for regular meetings and fundraising events. MCE will work with student groups to develop displays for this space.

Key Partners MCE will partner closely with other organizations promoting resource conservation, including water districts, climate coalitions, renewable and distributed generation companies and installers, and electric vehicle companies. MCE will communicate regularly with these entities to ensure that they are armed with the latest program information. MCE will facilitate program participants’ applications for rebates with these partner agencies and to the extent possible integrate those applications with the MCE application to streamline the participation process. MCE supports innovative partnerships (such as neighborhood-based or peer-to-peer learning approaches), using the Department of Energy’s “Tool Kit Framework: Small Town Energy Program”15. This guide highlights models of successful community engagement and serves as a reference manual for parties running community-based energy programs.

15 Department of Energy. Tool Kit Framework: Small Town Energy Program. Available at http://energy.gov/eere/better-buildings-neighborhood-program/tool-kit-framework-small-town-energy-program-step. Accessed August 5, 2015.



MCE will adjust its partnership strategy throughout the program cycle based on key performance indicators, and customer needs and drivers. MCE constantly seeks new partnership opportunities to help achieve its end goal of deeper energy and greenhouse gas savings. The table below maps strategies to key partners. It is not intended to be fully comprehensive, but rather, a visual representation. Table 4. Key Partners

Single Family Strategy Information

and Automation

Community Engagement

Energy Upgrades

Zero Net Energy

Basic Rebates

Green Home Loans

Key

Par

tner

s

Contractors (HVAC, lighting,

etc.)

X X X X

Community Groups

X X X

City and County Organizations

X X X X X

Business Partners

(implementers, software and

web tool providers, etc.)

X X X X X

Schools X

Health and Safety MCE will not offer rebates for any upgrades that are required by federal, state, or local regulations. MCE will consider incorporating health and safety messaging in program outreach and marketing efforts. For example, MCE may work with contractors to encourage the inclusion of gas and refrigerant leak detection in the assessment (“health audits”), or to deliver informational pamphlets.

Quality Assurance and Quality Control Advanced and Basic Home Upgrade Program. MCE does not propose changes to the existing Quality Assurance (QA) and Quality Control (QC) policies of the Home Upgrade program, which relies on Building Performance Institute (BPI) certified contractors to perform building diagnostic testing and complete the work. Single Measure Rebates. For most single measure rebates, such as appliances, lighting, and refrigeration, a mailed or scanned receipt with a signed rebate application will be sufficient documentation. If building envelope measures such as windows and insulation are a component of the project, then combustion appliance safety (CAS) testing will be required. Additionally, the program will require proof of permits for single measure projects for which permits are required by law, for example furnace and water heater replacements. Rebates will not be available for measures for which there is an existing upstream rebate; MCE will post the list of eligible measures on the website to avoid confusion.



Measuring Success

Logic Model Figure 7. Logic Model



Performance Metrics MCE takes an adaptive management approach to continuously evaluate program performance. To enable an interactive approach, MCE has a process for gathering information: Advanced Metering Infrastructure (AMI) data, customer feedback, participation surveys, and other sources. This feedback loop enables MCE to make improvements throughout the program cycle. For the residential sector, the following performance metrics will be tracked: 1. Participation Metrics. Number of customers participating in each strategy. Number of hard-to-reach

customers. Number of repeat participants. Number of projects provided with technical assistance. Number of projects completed with more than one demand side strategy.

2. Savings Metrics. Total net and gross energy and demand savings and greenhouse gas savings. MCE plans to employ a mix of deemed, widget based methodologies as well as custom and performance based methodologies.

3. Measure-level Information. Total number of installed measures. 4. Incentive Metrics. Total dollar value allocated. Largest rebate amount. 5. Customer Satisfaction. Number of repeat participants. Number of referrals. Customer satisfaction as

reported by customers. 6. MCE Brand Awareness. Number of customers in MCE service territory that are aware of MCE’s

energy efficiency programs. Program Specific Metrics: 1. Home Information and Automation Program. Number of Action Plans created. Number of HUR

recipients who create Action Plans. Customer satisfaction/positive feedback on web tool. Number of projects initiated through web tool.

2. Community Engagement and Gamification. Number of participants. Number of events held throughout the competition, and number of attendees. Increased participation in MCE’s Residential EE offerings.

3. Home Upgrade Program. Increase in participation of whole home upgrades. Number of HVAC replacement projects in the program. Contractors trained in CAS testing and natural gas leak detection. Projects completed with one or more other demand side strategies integrated.

4. Zero Net Energy (ZNE). Number of ZNE retrofits completed. Number of ZNE new construction projects completed.

5. MCE On-Bill Program. Percentage of successful applicants. Average loan amount. Default rate. Number of loan applicants.

6. PACE Financing. Number of referrals. Number of completed projects. 7. Single Measure Rebates. Number of online rebate applications. Number of applicants ‘up-sold’ to

the comprehensive program. 8. Schools Program. Number of students provided with in-class curriculum. Numbers of students

reached through assembly presentations.

Evaluation, Measurement and Verification (EM&V) MCE will gather data on participation metrics, savings, and measure information as a standard business practice. Depending on resources and expertise, MCE will either conduct or hire an outside firm to complete a study on the market transformation indicators mentioned above.

Additionally, MCE will gather customer satisfaction and referral metrics as standard business practice – either on project forms, or via customer survey submitted shortly after project completion. This data will be analyzed to ensure continuous improvement and that program strategies align with customer needs.


Marin Clean Energy Multifamily Sector



i



Energy Consumption .......................................................................................................................................... 1

Building Data ....................................................................................................................................................... 2

Barriers ................................................................................................................................................................. 3

Triggers ................................................................................................................................................................ 4

Key Market Actors ............................................................................................................................................... 4

Adoption and Penetration .................................................................................................................................. 4

BUDGET ................................................................................................................................................................... 5

MULTIFAMILY PROGRAM ...................................................................................................................................... 6

Combined Measure Incentives .......................................................................................................................... 6

Light Touch Measure Incentives ........................................................................................................................ 6

In-Unit Direct Install Service ............................................................................................................................... 6

Unit Turnover Program ....................................................................................................................................... 7

Retrocommissioning and Maintenance Education Programs......................................................................... 7

Zero Net Energy (ZNE) ....................................................................................................................................... 7

Tenant Education Strategies .............................................................................................................................. 7

Financing .............................................................................................................................................................. 7

Green Property Loans..................................................................................................................................... 7

Property Assessed Clean Energy (PACE) ..................................................................................................... 8

IMPLEMENTATION ELEMENTS ............................................................................................................................ 8

Marketing and Outreach .................................................................................................................................... 8

Key Partners ......................................................................................................................................................... 9

Health and Safety .............................................................................................................................................. 11

Quality Assurance and Quality Control ........................................................................................................... 11


Logic Model ....................................................................................................................................................... 12

Performance Metrics ......................................................................................................................................... 13

Evaluation, Measurement and Verification (EM&V) ....................................................................................... 13


ii

TABLE OF TABLES Table 1. Budget Summary ...................................................................................................................................... 5 Table 2. Cost Effectiveness Summary.................................................................................................................... 6 Table 3. Terms of MCE’s Green Property Loan .................................................................................................... 8 Table 4. Key Partners ............................................................................................................................................ 10

TABLE OF FIGURES Figure 1. Electricity Use in Multifamily Building by End Use. (2010 RASS) ........................................................ 2 Figure 2. Residential Building Vintage by Service Territory ................................................................................ 3 Figure 3. Logic Model ........................................................................................................................................... 12


iii MCE Multifamily Sector PIP

ACRONYMS

The following acronyms are used throughout the document:

AMI - Advanced Metering Infrastructure CAS - Combustion Appliance Safety CRM - Customer Relationship Management EM &V - Evaluation, Measurement and Verification ESAP - Energy Savings Assistance Program ESCO - Energy Services Company HUD - Housing & Urban Development HVAC - Heating, Ventilation and Air Conditioning PACE - Property Assessed Clean Energy SPOC - Single Point of Contact TCAC - Tax Credit Allowance Committee TRC - Total Resource Cost ZNE - Zero Net Energy


1 MCE Multifamily Sector PIP

Implementation Plan: Multifamily

Introduction Marin Clean Energy (MCE) has identified the multifamily residential sector as an important area for tailored and strategic energy efficiency program offerings. The opportunities for and barriers to adoption of energy efficiency measures in multifamily buildings are distinct enough from those of single family homes to warrant a separate program approach within the residential sector. Multifamily properties are affected by the split incentive barrier, as owners bear the burden of investment costs for equipment upgrades while tenants reap the benefits of saving on energy bills. Many upgrades are invasive and time intensive. Property owners are reluctant to undertake projects that will disrupt tenants, particularly in market rate buildings.

MCE’s Multifamily Energy Efficiency Program employs several strategies designed to reduce participation barriers. MCE will offer a phased approach allowing owners to create long-term project plans, coordinating upgrade timing with key trigger points, such as at unit turnover. Along with the phased approach, MCE will also offer a Single Point of Contact (SPOC) to guide property owners through the process of participating and technical assistance to help them understand the energy and resource conservation options that are a good fit for their property. To help address barriers related to equipment cost and split incentives, MCE will offer rebates on measures, direct install of free in-unit measures and financing.

Market Characterization MCE has analyzed energy consumption, building data, barriers, triggers, key market actors, and current energy efficiency adoption to better understand the opportunities that exist within the multifamily sector.

Energy Consumption The multifamily sector accounts for 11% of building energy use in California and approximately 24% of all residential energy use.1 Water heating counts for the largest single end use of electricity in multifamily buildings at 44%, with lighting, space heating, and refrigeration making up another 33% of electrical use in the multifamily sector.

1 Multifamily energy use is representative of all buildings with 2+ units. California Energy Commission, Existing Buildings Energy Efficiency Action Plan (DRAFT), pg. 11. Available at http://docketpublic.energy.ca.gov/PublicDocuments/15-IEPR-05/TN203806_20150310T093903_California%E2%80%99s_Existing_Buildings_Energy_Efficiency_Action_Plan.pdf, posted March 10, 2015, accessed July 15, 2015.



Figure 1. Electricity Use in Multifamily Building by End Use. (2010 RASS)

Building Data The vast majority of the residential building stock in MCE’s service area was built between 1950 and 2000, with approximately 50% of the buildings being built between 1950 and 1975. The exception is in Benicia where the majority of residential buildings were built between 1975 and 1999. Title 24 was established in 1978 by the California Energy Commission and set regulations regarding energy conservation standards for new residential and new non-residential buildings.2 The pre-1978 building stock was not built with these set conservation standards. These older buildings present both an opportunity in that there is likely room for improvement but also a challenge as there will be costs associated with bringing those buildings up to code.

2 California Energy commission. Conservation Division. Regulations Establishing Energy Conservation Standards for New Residential and New Nonresidential Buildings. July 26, 1978. Available at http://www.energy.ca.gov/title24/standards_archive/1978_standards/CEC-400-1978-001.PDF, accessed July 15, 2015.

44%

6%4%3%

10%

12%

11% 6% 4%

Multifamily Electrical Usage

Water Heating

Pools & Spas

Dishwashing & Cooking

Laundry

Space Heating

Lighting

Refrigerators



Figure 2. Residential Building Vintage by Service Territory

MCE’s service area is primarily residential, with 85% of its customers on the residential rate schedule. MCE is unable to determine from billing data how many of these customers live in multifamily properties.

Barriers There are several barriers that may prevent the multifamily sector from fully taking advantage of energy efficiency opportunities. These barriers include:

Financial Constraints. Energy efficient upgrades can be quite costly. Multifamily property owners face difficulty in taking out loans for energy efficiency upgrades, as the risk-adverse underwriting market and lack of existing valuation for energy efficiency upgrades often results in high interest rates.

Difficulty in Accessing Decision Makers. The majority of large market rate properties are managed by property management companies. Within the structure of these companies, it can be difficult to communicate with property owners, who are often the primary decision makers when it comes to spending money on capital improvements.

Split Incentive Issue. The vast majority of multifamily property residents rent the unit they occupy.3 When renters are responsible for paying utility bills, building owners are disincentivized to invest in upgrades from which they won’t receive financial benefits.

Contractor Limitations. Based on community feedback that MCE has received, there is a perception among some contractors that rebate programs are time and labor intensive. Therefore, some contractors give customers an out-of-pocket discount to avoid referring projects to existing rebate programs.

Negative Customer Experience. Some past participants have given MCE negative feedback regarding the quality of past programs, leading to reluctance to participate in future programs.

MCE’s multifamily program is designed to address these barriers by reaching customers at trigger points and offering tailored solutions.

3 Overlooked and untapped: Unlocking the Energy-Efficiency Potential in Multifamily Housing.” Benningfield Group. 2010.



Triggers Trigger points are moments of opportunity when the likelihood of engaging customers in an energy efficiency program is highest.

For example, there are particular times during the maturation of a multifamily building when it is most cost effective to make energy efficiency upgrades. MCE will tailor its offerings to capitalize on opportunities such as unit turnover, major rehabilitation and renovations, emergency equipment failure, and affordable housing financing cycles and annual budget requirements. Additionally, MCE will use upcoming or anticipated changes in codes, standards, and regulations as a trigger point to motivate multifamily customers to act on resource conservation.


Key Market Actors There are many entities that influence the multifamily sector. It is important that MCE understand the role that each entity plays and how this can affect efforts to promote energy efficiency:

Local Governments. Local governments set local building and zoning laws, issue permits, and provide information to local residents and property owners. Local governments have a pre-existing relationship with their constituents and are attuned to the community’s opportunities, needs, and challenges.

Property Owners, Home Owners Associations, and Management Companies. Property owners are the primary decision makers and funders of expenditures on capital improvements, such as energy efficiency improvements. Property managers, facility managers, and property management companies are the “boots on the ground” for replacement and maintenance of capital equipment. These key players will be integral to the success of MCE’s Multifamily Energy Efficiency Program. MCE must engage them in order to accomplish projects and will benefit from building lasting relationships.

Contractors/Builders/Designers/Architects/Engineers. Contractors, builders, designers, and architects are key influencers of building owners and operators and are key to making referrals to energy efficiency programs. These key players often hold significant delegated authority regarding the energy efficiency and capital improvements to properties. MCE will provide targeted workforce opportunities to these players to create a shift in the building industry to better incorporate energy efficient decision making. They will also be integral to driving participants to the program.


Adoption and Penetration Before implementing multifamily program strategies, MCE evaluated current adoption and penetration of energy efficiency programs to identify opportunities and determine market gaps.

In the 2010-2012 program cycle, PG&E programs saved approximately 17 GWh and just under 2 MMTh in the multifamily sector. 4 MCE has not received data on how much of that occurred in MCE service territory. The vast majority of the electricity savings came from indoor lighting, with much smaller savings coming from HVAC, appliances, and water heating. On the gas side, water heating generated the greatest savings with HVAC and appliances contributing smaller savings figures.

In the 2013-2014 program cycle both MCE and BayREN introduced multifamily programs designed to motivate more comprehensive improvements in multifamily properties. Through mutual agreement between the two agencies, MCE was given the first choice to serve properties in MCE’s service territory. BayREN’s program has completed upgrades in over 8,000 units as of June 2015. The most commonly

4 “California Energy Efficiency Statistics,” accessed July 9, 2015, http://eestats.cpuc.ca.gov/Views/EEDataPortal.aspx



rebated end-uses under that program, in order of frequency, are water heating, building envelope, and lighting.

MCE’s program provided technical assistance to more than 1,200 units and has completed upgrades in over 900 units. The program has achieved the greatest savings from domestic hot water measures and lighting.

In addition to the energy efficiency programs administered under Public Utilities Code section 381.1, there are also energy efficiency programs available to the low income sector. The Energy Savings Assistance Program (ESA) is administered in MCE’s service territory by PG&E. The ESA program provides free installation of energy saving equipment and performs energy upgrades at no cost to program participants. To qualify for these services, household incomes must be at or under 200% of the federal poverty level.

In program years 2007-2012, PG&E provided ESA program services to 81,555 participants, or 21% of the eligible population5. Information for program year 2010-2012 shows that of 58,877 multifamily households served through the ESA program, the most commonly installed measures were lighting (89% of households received lighting), domestic hot water (84%), and building envelope and air sealing (82%).6 Other measure categories included appliance replacement, primarily refrigerators (14%), cooling equipment (14%), and heating equipment (1%).7 There is no information available as to what percentage of these installations occurred in MCE service territory.

Based on the market characterization analysis, MCE has developed, improved upon, or leveraged the multifamily program offerings and projected a budget for the first four years of the program.

Budget The proposed budget for the first four years of the multifamily program is as follows:

Table 1. Budget Summary


Administrative $91,823 $180,465 $207,123 $207,123

Marketing $155,464 $198,120 $224,779 $224,779


Incentives $178,765 $666,473 $866,284 $866,284

Evaluation, Measurement and Verification (EM&V)

$36,789 $72,246 $82,909 $82,909

Total $1,016,957 $1,906,564 $2,169,350 $2,169,350

5 Energy Savings Assistance Program Multifamily Segment Study, Volume 1: Report. Cadmus, 2013. P.58. 6 Ibid, p.62. 7 Ibid.





Multifamily Program Based on the sector analysis, MCE will implement the following multifamily program offerings.

Combined Measure Incentives The combined measure incentive program provides free technical assistance to property participants, including an initial on-site assessment, help in soliciting bids for appropriate equipment, project management oversight, and post-project installation verification. Under this program, participants will need to complete at least two measures and incentives are offered on a per unit basis, with incentives increasing based on the depth of the project. Participation of at least 50% of the property’s units in the direct install program (described below) counts towards the bundled measure incentive.

MCE requires a “good faith” deposit for all properties that participate in this program before moving forward with free technical assistance; the deposit will be reimbursed to the participant upon project completion. If upgrades will be completed over a longer period of time, MCE will support project phasing, however MCE will require monthly progress updates in order to continue to reserve rebates for a project with an extended completion schedule.

Light Touch Measure Incentives MCE will offer rebates on light touch measures to get properties engaged with our program. Examples of light touch measures would be small lighting projects, appliance replacements in 50% or less of units, window replacements, and pool pump replacements. These light-touch measures allow properties to complete smaller, cost effective energy savings upgrades with little to no tenant disruption. The primary objective of this offering will be to introduce more properties to MCE’s programs without requiring a commitment to a more comprehensive project. The multifamily SPOC will work with light touch measure incentive recipients to identify good candidates for further upgrades through the combined measure incentive offering.

In-Unit Direct Install Service MCE will offer a no-cost direct install service in partnership with water districts to multifamily properties in its service area. Representatives of MCE will install LEDs and high performance faucet aerators in participating units. This service will be offered in two formats:

As a stand-alone offering for tenants who would like to upgrade their energy and water saving equipment.

As part of a larger combined measure project scope at the request of the property owner or manager. This offering will include conservation education for tenants.

The direct install service is a component of MCE’s workforce development program. As described in detail in MCE’s Workforce Program Implementation Plan, MCE will partner with local workforce development organizations to provide outreach and equipment installation trainings. In addition to installing equipment, direct install team members will educate tenants on energy and water conservation, the equipment being installed, and any larger upgrades being undertaken at the property.

Sector Summary Years 1 and 2 Years 3 and 4

Total Resource Cost (TRC) 1.16 2.05

Estimated Savings (net) 1,101,977 kWh 89,586 therms

2,444,440 kWh 290,776 therms



Unit Turnover Program MCE has found that property owners and managers are more willing to invest in energy efficient upgrades in tenant units when the unit is vacant. Thus, MCE has begun piloting a process to help property managers schedule in-unit upgrades at the time of unit turnover. Normally, a property would have to do in-unit upgrades in at least 75% of units to be eligible for in-unit measure incentives under the combined measure rebate offering. However, MCE will work with property owners who commit to a phased schedule to pay out incentives incrementally as units are upgraded.

Retrocommissioning and Maintenance Education Programs In order to support ongoing energy savings beyond equipment replacement or retrofit, MCE will offer support for property managers to develop long-term energy management plans. These plans will achieve energy savings and help ensure persistence of previously realized savings through quality management techniques. Strategies employed under this offering could include incentives for retrocommissioning and operations and maintenance training for building staff.

Zero Net Energy (ZNE) The California Public Utilities Commission and the California Energy Commission have reinforced a commitment to increased development of ZNE buildings in California. For the purposes of this program offering, MCE defines a ZNE building as one that annually produces at least as much energy on site as it consumes. To achieve statewide carbon mitigation goals, ZNE buildings will be crucial, and deep retrofits for existing buildings will be necessary, while significant design and technical assistance will be required for new construction.

MCE will offer additional incentives and technical assistance to multifamily properties that are interested in reducing their energy consumption to the point that they could reasonably offset their full load with on-site generation.

Outreach and education about the value of ZNE to generate interest within the multifamily sector and to ensure that there is a robust trained network of professionals will also be a significant component of this offering. MCE will work with ZNE and passive house advocates and local governments to advocate for codes and standards that will facilitate successful development of ZNE projects.

Tenant Education Strategies MCE will develop an online platform specifically for tenants within its residential web tool. The platform will provide how-to and DIY resources aimed specifically at renters and resources to provide property management or owners with information on MCE’s rebate program offerings to support property wide upgrades.

For all web tool users (owner or renter) MCE plans to integrate advanced metering infrastructure (AMI) data to provide detailed information to tenants on when energy is being used in their home. MCE will explore opportunities to integrate the web tool with home automation devices and programmable thermostats, enabling tenants to participate in emerging residential side demand response programs. The SPOC will facilitate access to these programs where appropriate on behalf of interested tenants.

Financing MCE will help customers navigate the landscape of financing offerings available and encourage them to participate to the extent that it facilitates energy efficiency upgrades. Financing structures that are tied to the building, and not the participant, can possibly stimulate investment where the split incentive would otherwise present a barrier. Specific financing strategies are described below.

Green Property Loans This provides eligible customers with a low interest loan they can repay on their monthly utility bill. MCE proposes to continue offering this product. The loan terms and conditions are detailed below.



Table 3. Terms of MCE’s Green Property Loan

Interest Rate 5% APR

Loan Terms 5-10 years

Security UCC-1 Fixture Filing

Eligible Projects Multifamily properties participating in an MCE rebate program

Property Assessed Clean Energy (PACE) PACE is a tool where property owners can voluntarily opt into a tax assessment, which is then tied to the property. Advantages of PACE include transferability with the property, helping to mitigate concerns over payback period and average tenancy in a building, and the fact that it is paid on property taxes. PACE financing also enables investment in renewable energy and water savings improvements, and in some cases can be a source of financing for new construction projects.8

Currently MCE is working with the County of Marin to establish an Open Market PACE model where any provider who can agree to a minimum set of best practices would be eligible to operate in Marin. MCE will seek to work with other parts of its service territory to expand this approach to PACE. MCE maintains a financing marketplace web portal where information about all available financing products is presented to the customer. Additionally, SPOCs will refer customers to PACE providers.

Implementation Elements Across the multifamily program offerings, MCE will utilize these implementation strategies to help customers achieve energy reductions.

Marketing and Outreach MCE will undertake the following activities to market the program and promote awareness of energy efficiency and resource conservation in its service territory:

Single Point of Contact (SPOC). The SPOC will manage relationships with customers in the multifamily program. MCE’s Customer Relationship Management (CRM) software organizes data for lead generation and follow-up. The SPOC will use this data to engage existing participants in additional energy efficiency opportunities, converting leads into active and completed projects.

Targeted Outreach. MCE will use energy usage data to conduct outreach campaigns at properties with high energy consumption. These campaigns will be aligned with trigger points. MCE will also use property specific data, such as assessor records and AMI data, to develop pre-assessment opportunity reports to present to decision makers. This information will be a powerful tool for the SPOC to use in communicating with customers about opportunities and benefits of the program.


Recognition Campaigns. MCE will host award ceremonies conducted by an emcee or local luminary to recognize customers with the greatest energy savings and contractors who provide the most




customer leads or complete the greatest number of projects. These local energy efficiency leaders will be given free publicity on the MCE website and may be featured in MCE’s Energy Efficiency Demonstration Room. MCE will also work to develop labeling campaigns for customers who have completed projects, such as signage, window stickers, and other public recognition.

Referral Bonuses. Technical assistance providers, contractors, and property management professionals are encouraged and incentivized to refer participants to the program. Referrals that result in a completed project will receive a bonus.

Key Partners MCE will partner closely with other organizations promoting resource conservation, including water districts, climate coalitions, renewable and distributed generation companies and installers, and electric vehicle companies. MCE will communicate regularly with these entities to ensure that they are armed with the latest program information. MCE will facilitate program participants’ applications for rebates with these partner agencies and to the extent possible integrate those applications with the MCE application to streamline the participation process.

MCE will adjust its partnership strategy throughout the program cycle based on key performance indicators, and customer needs and drivers. MCE constantly seeks new partnership opportunities to help achieve its end goal of deeper energy and greenhouse gas savings.

Some of the key partners include:

Building Industry Partners. MCE will work with builders and contractors to generate referrals. MCE will reach out to building industry partners through local organizations, such as the Marin Builders Association, and through direct outreach. MCE will partner with local building permit officials to identify the contractors pulling the most permits in the region, and will conduct targeted outreach to these contractor groups.

Technical Assistance Providers/Raters/Inspectors. MCE will conduct outreach and educate technical assistance providers, raters, and inspectors for referrals. MCE will work with professional organizations such as the Building Performance Institute to identify trained professionals in its service territory, and will use this information to reach out to professionals and ensure they are aware of the MCE program offerings. MCE will also use these channels to communicate the availability of specific incentives such as the referral bonus.

Lending Institutions. MCE will partner with local lending institutions to offer loans for upgrades with on-bill repayment.

Energy Services Company (ESCO)/Tax Credit Allowance Committee (TCAC)/Housing & Urban Development (HUD). MCE will work with ESCOs, TCAC providers, and HUD to ensure affordable housing developers are aware of MCE’s multifamily program offerings.

Local Governments. MCE will work with local governments to advocate for codes and standards that support the inclusion and ease of implementation for Zero Net Energy measures and equipment.

Manufacturers. MCE will partner with manufacturers to provide demonstrations and trainings on the use of new equipment and technologies.

Community Based Organizations. MCE will partner with community programs offering services and support around health and safety issues to conduct education and outreach.

Real Estate Agents/Moving Companies. Real estate professionals and moving companies have access to multifamily property decision makers and tenants at key trigger points. Working with these entities will enable access to properties at the right time to influence upgrades.

Building Supply Stores. MCE will work with equipment supply stores to create awareness around available rebates. Opportunities here include labeling eligible equipment on the store shelves and working with stores to host outreach materials at checkout counters. Many stores also have established relationships with the contractor community through special programs; MCE will work with local stores to identify these relationships and gain access to these communication channels where possible.



The table below maps strategies to key partners. It is not intended to be fully comprehensive, but rather, a visual representation.

Table 4. Key Partners

Multifamily Strategies

Key

Par

tner

s

Combined Measure

Incentives

Light Touch

Measure Incentives

In-unit Direct Install

Service

Unit Turnover

RCx and Maintenance

Edu

ZNE Tenant Edu Financing Marketing+

Outreach

Building Industry Allies

X X X X X X X

Technical Assistance

Partners

X X X X X X X X X

Lending Institutions

X X

ESCO/ TCAC/ HUD

X X X X X X

Local Governments

X X X X

Community Organizations

X X X X X X

Real Estate Organizations

X X X

Building Supply Stores

X X



Health and Safety MCE will ensure proper Combustion Appliance Safety (CAS) testing has been completed when gas appliances are being replaced and/or when there have been significant impacts to the building’s pressure dynamics, in accordance with California Multifamily Home Energy Retrofit Coordinating Committee9 protocol. MCE will also train auditors and technical assistance providers in testing for natural gas leaks while on site.

MCE will provide tenants with resources to identify and understand the threats of health and safety issues. The online platform will also provide access to available services and information for tenants to share with their landlords. MCE’s online platform will also educate tenants on how energy efficiency upgrades can help address health and safety issues in their units.

Quality Assurance and Quality Control Single Point of Contact (SPOC) as QA. The level of engagement and customer service provided by

the SPOC creates an inherent level of quality assurance, by preventing and/or addressing any issues that arise and instituting continuous improvement practices in real time. The SPOC will also seek post project feedback in the form of a survey.

Pre-Installation Existing Conditions Verification. MCE will conduct pre-project assessments on 100% of projects referred by contractors until they have completed 10 projects with no issues. At this point contractors will be able to submit photos and other documentation, including name plate efficiency, existing wattage, etc. that sets a baseline for measures. MCE will then conduct for pre-project verification on 15% of projects submitted by a contractor. If a contractor is noted to have provided false information, they will again be subject to 100% on-site verification until they provide 10 projects with no errors.

Certified/Licensed Contractors/Raters. MCE will work with contractors who are certified to conduct ASHRAE level I & II audits, contractors who are properly licensed and bonded for the scope of work, and BPI Building Analysts or HERS Multifamily Raters. In some instances MCE may require contractors and/or raters to submit documentation showing they meet the minimum qualifications.

Post-Project Site Verification. MCE’s technical implementer will conduct post-project site verification to ensure proper equipment installation on 100% of the projects, unless the project is currently participating in a program with equivalent rigor on on-site inspection / verification (for example, projects participating in the Tax Credit Allocation Committee process). Installation contractors will be required to sign and agree to the program’s minimum installation and performance requirements for that measure before the project is accepted in the program queue. This will serve as the basis for the post-construction site verification.

Monitoring Savings. MCE will use software tools such as Portfolio Manager to monitor actual program savings against expected project savings to monitor real time energy impacts. This will provide MCE with valuable information about realization and persistence of energy savings as well as identify opportunities for ongoing operations and management training.

9 Multifamily Subcommittee of the California Home Energy Retrofit Coordinating Committee. MF HERCC Recommendations Report 2015 Update. January 25, 2015



Measuring Success

Logic Model

Figure 3. Logic Model



Performance Metrics MCE will use data from the 2013-2015 program to develop a baseline for performance metrics where applicable.

1. Number of comprehensive energy assessment reports delivered 2. Number of units/buildings receiving energy 3. Number of water savings measures installed 4. Number of ZNE projects 5. Number of loans provided 6. Number of contractor referrals 7. Number of contractor or property manager trainings 8. Number of tenants provided with educational information

Evaluation, Measurement and Verification (EM&V) MCE will undertake a process evaluation at the end of year two of the Unit Turnover Strategy. The evaluation will explore the extent to which the phased approach helps property owners commit to larger projects and the expected rate of turnover in participating properties. Based on the findings the evaluation will offer recommendations about program continuation and recommendations for improvement.

Additionally, MCE will also conduct a cross-program process evaluation of the SPOC offering to determine to what degree it helps alleviate customer confusion and encourages repeat participation through project phasing.


Marin Clean Energy Commercial Sector



i



Energy Consumption .......................................................................................................................................... 1

Building Data ....................................................................................................................................................... 3

Barriers ................................................................................................................................................................. 5

Triggers ................................................................................................................................................................ 5


Adoption and Penetration .................................................................................................................................. 7

BUDGET ................................................................................................................................................................... 8

COMMERCIAL PROGRAM ..................................................................................................................................... 8

Retrofit .................................................................................................................................................................. 9

Green Business Certification .............................................................................................................................. 9

Demand Side Management Bidding .............................................................................................................. 10

Data Analytics and Behavioral Approaches .................................................................................................... 10

Strategic and Continuous Energy Improvement (S-CEI) ............................................................................... 11

New Construction ............................................................................................................................................. 11

Financing ............................................................................................................................................................ 12

Green Business Loans .................................................................................................................................. 12

Leveraging Other Programs ........................................................................................................................ 12

IMPLEMENTATION ELEMENTS .......................................................................................................................... 12

Marketing and Outreach .................................................................................................................................. 12

Key Partners ....................................................................................................................................................... 13

Health and Safety .............................................................................................................................................. 14

Quality Assurance & Quality Control .............................................................................................................. 14


Logic Model ....................................................................................................................................................... 16




ii

TABLE OF TABLES Table 1. Budget Summary ...................................................................................................................................... 8 Table 2. Cost Effectiveness Summary.................................................................................................................... 8 Table 3. Certified Green Businesses in MCE's Service Territory ...................................................................... 10

TABLE OF FIGURES Figure 1. California Commercial Electricity Usage by Building Type ................................................................. 2 Figure 2. California Commercial Natural Gas Usage by Building Type ............................................................. 2 Figure 3. California Commercial Electric Usage by End Use .............................................................................. 3 Figure 4. California Commercial Natural Gas Usage by End Use ....................................................................... 3 Figure 5. Commercial Building Vintage across Service Territory ....................................................................... 4 Figure 6. Commercial Building Size across Service Territory .............................................................................. 4 Figure 7.Key Partners ............................................................................................................................................ 14 Figure 8. Logic Model ........................................................................................................................................... 16


iii MCE Commercial Sector PIP

ACRONYMS


AMI - Advanced Metering Infrastructure CEC - California Energy Commission’s CEUS - California Commercial End-Use Survey CRM - Customer Relationship Management DG - Distributed Generation DR - Demand Response EE - Energy efficiency EM &V - Evaluation, Measurement and Verification EMIS - Energy Management Information Systems EVs - Electric Vehicles HVAC - Heating, Ventilation and Air Conditioning IDSM - Integrated Demand Side Management IOU - Investor Owned Utilities LED - Light-Emitting Diode M&V - Measurement and Verification O&M - Operations & Maintenance PACE - Property Assessed Clean Energy PIP - Program Implementation Plan QA - Quality Assurance QC - Quality Control S-CEI - Strategic and Continuous Energy Improvement SMB - Small to Midsize Business SPOC - Single Point of Contact TRC - Total Resource Cost


1 MCE Commercial Sector PIP

Implementation Plan: Commercial

Introduction Marin Clean Energy (MCE) has identified the commercial sector as an important area for tailored and strategic energy efficiency program offerings.

The commercial program is structured to transition from focusing primarily on technical assistance, rebates and incentives, and financing to incorporating cutting-edge strategies like demand side management bidding, web-based tools and software, behavioral campaigns and competitions, and strategic and continuous energy improvement. Many of the proposed strategies are relatively new to the marketplace, so will be phased in to closely evaluate and quantify the success of the transition.

A core tenet of the program is delivering a seamless platform for integrating opportunities across energy efficiency (EE), demand response (DR), distributed generation (DG), renewables, electric vehicles (EVs), and water efficiency. Collectively, these opportunities are called integrated demand side management (IDSM).

The commercial program will maximize both customer and program benefits by offering a flexible yet structured approach to IDSM. The full-service approach provides technical assistance, rebates, financing, assistance finding contractors, quality assurance, and project management. The program offers a targeted and personalized approach through software and data analytics to identify best candidates and develop a savings action plan. MCE is committed to providing excellent customer service and satisfaction through dedicated staff resources and tools.

Targeted users include all non-residential customers within MCE’s service territory, including office buildings, storage facilities and warehouses, schools, restaurants, municipalities, hospitals, retail facilities, hotels, and motels.1

Market Characterization MCE has analyzed energy consumption, building data, barriers, triggers, key market actors, and energy efficiency adoption to better understand the opportunities that exist within the commercial sector.

Energy Consumption Commercial businesses account for ten percent of MCE’s accounts, yet represent about 50 percent of its electrical consumption. This demonstrates the importance of targeting the commercial sector to achieve energy and greenhouse gas emission reductions.

Since typical commercial energy consumption profiles vary considerably across California and within MCE’s service territory, MCE anticipates working with partners that understand the diversity of its customer base and tailoring strategies accordingly.

The following graphics depict statewide commercial electricity and gas usage by building type and end use. The data is from the 2006 California Commercial End-Use Survey (CEUS), which is a comprehensive study of commercial energy use across thousands of commercial facilities in California.

1 Agricultural and industrial customers will be served under MCE’s agricultural and industrial programs.



Figure 1. California Commercial Electricity Usage by Building Type

Source: California Commercial End-Use Survey (CEUS). California Energy Commission. Accessed June 9, 2015. http://www.energy.ca.gov/ceus/

On a statewide basis, electricity and gas use varies considerably across commercial customer segments. For example, on a comparative basis, restaurants’ natural gas use is a more significant cost driver than it is for large offices. Meanwhile, on an absolute basis, the large office segment represents the highest electricity use segment while restaurants represent the highest gas use segment. This points to a need for targeted, relevant program offerings.

Figure 2. California Commercial Natural Gas Usage by Building Type

Source: CEUS

In the commercial sector, the primary electricity end uses are interior lighting, cooling, ventilation, and refrigeration. The top three gas end uses are heating, water heating, and cooking, which comprise over 90% of the sector’s gas usage. The following breakdown provides insights into the top-consuming measures, which can serve as a useful tool for targeting energy efficiency opportunities.



Figure 3. California Commercial Electric Usage by End Use

Source: CEUS

Figure 4. California Commercial Natural Gas Usage by End Use

Source: CEUS

Building Data MCE’s service territory contains a diversity of commercial building vintages, which provides insights into trends affecting construction and growth. Marin County, for example, has seen declining growth since the mid-1970s due to planning regulations and growth limits, while Benicia has seen considerable growth and expansion during that same time period. Building vintage provides useful insights into energy efficiency program planning and marketing strategies.



Figure 5. Commercial Building Vintage across Service Territory

The size of commercial buildings varies considerably across MCE’s service territory. To effectively serve its diverse customer base, MCE tailors its energy efficiency strategies according to customer needs. For example, strategies focused on serving the small commercial segment may be better suited to Richmond, El Cerrito, and San Pablo (with the greatest number of commercial buildings under 5,000 square feet); meanwhile, there may be more significant opportunities for large commercial upgrades in Napa and Marin (which have the greatest share of commercial facilities over 100,000 square feet).

Figure 6. Commercial Building Size across Service Territory

*Data not available for Benicia.

0%

10%

20%

30%

40%

50%

60%

70%

Before 1950 1950‐1974 1975‐1999 2000‐2014

Commercial Building Vintage across Service Territory

Richmond, El Cerrito, and San Pablo Marin Napa Benicia

0%

10%

20%

30%

40%

50%

60%

70%

< 5k 5k > 10k 10k > 20k 20k > 50k 50k > 100k > 100k

Commercial Building Size across Service Territory*

Richmond, El Cerrito, and San Pablo Marin Napa



Barriers There are several barriers that may prevent the commercial sector from fully taking advantage of energy efficiency opportunities. These barriers include:

Financial Constraints. Payback requirements are 3.6 years on average.2 This can be a challenge for two reasons. First, it can limit deeper retrofits. Second, many small commercial building owners change properties every 2 to 5 years, so are not incentivized to pay for efficiency upgrades where they may not reap the rewards during ownership. Some entities are constrained by barriers separating capital development and operating funds, and can be limited by lowest-bid regulations. Accessing capital funds often requires approval from fiscal managers, who are tasked with balancing many competing priorities across business lines.

Split Incentive Issue. The “split incentive” issue refers to the challenge of encouraging energy efficiency upgrades in facilities where the tenant pays for electricity, but does not own the equipment. This arrangement is very common in the commercial sector, and can make it challenging to get buy-in and financial backing for efficiency upgrades. Potential savings are fragmented across a high diversity in business type and large geographical area.

Contractor Limitations. There are a limited number of contractors with technical knowledge of integrated and comprehensive demand-side management and a dearth of contractors that also have the business, sales, and project management skills needed to convert lead generation to complete projects.

Visibility of Improvements. Energy efficiency improvements are not as visible as other clean energy strategies, such as rooftop solar panels. As a result, efficiency improvements may not increase property values in the way that other clean energy strategies do.

Small to Midsize Business (SMB) Barriers. This customer segment tends to be difficult to engage due to the high number of businesses, fragmentation of savings across many small accounts, and difficulty getting the attention of busy small and midsize business owners.

Large Commercial Business Barriers. Energy efficiency may represent a relatively small portion of the large commercial operating budget. Some businesses may be concerned about impacts of energy efficiency on products and productivity. Furthermore, it can be challenging to reach decision makers in large commercial facilities.

Lack of Awareness. Commercial customers have a general lack of awareness of energy efficiency benefits and MCE programs. There is also uncertainty in achievable savings, time constraints, and a lack of dedicated energy managers in the commercial sector. Finally, there is a need for greater sub-metering to gain insight into energy consumption.

MCE’s commercial program is designed to address these barriers by reaching customers at trigger points and offering tailored solutions.

Triggers Trigger points are moments of opportunity when the likelihood of engaging customers in an energy efficiency program is highest. Trigger points for commercial customers include:

Turnover and Upgrades. Periods of change, such as office space turnover (signing or renewing a lease), turnover in retail or restaurant space, and major facility renovations or upgrades (restaurants, hospitals, hotels, groceries, offices, etc.).

Change in Law or Regulation. MCE will use upcoming or anticipated changes in codes, standards, and regulations as a trigger point to motivate commercial customers to act on resource conservation. Where there is a change of law or a sunset to an existing law, there is also opportunity for a SPOC to engage. MCE closely tracks developments including, among others:

2 McKinsey & Company. Unlocking Energy Efficiency in the US Economy. 2009. Page 58.



o Regulations: California Green Building Initiative Executive Order (S-20-04), California Energy Benchmarking and Disclosure Law (AB1103), California Comprehensive Energy Efficiency Program for Existing Buildings (AB758), and California Global Warming Solutions Act (AB32)

o Standards: California’s energy codes in retrofits (Title 20), California’s energy codes in new construction Title 24, International Organization for Standardization’s Energy Management Standard (ISO 50001), American National Standards Institute (ANSI) certification; Leadership in Energy & Environmental Design (LEED); Green Building Initiative’s Green Globes, and Department of Energy codes and standards (commercial HVAC equipment, lighting, appliances, etc.)

o Goals: California Long Term Energy Efficiency Strategic Plan and the Governor’s GHG emission reduction goals (Executive Order B-30-15)

MCE will help customers comply with benchmarking regulations (such as AB1103) and use benchmarking tools (such as Energy Star Portfolio Manager) to gather baseline building information and track efficiency updates.

Equipment Failure. Given capital constraints, commercial operations are unlikely to replace equipment that is not at or near the point of failure. Furthermore once equipment fails the ability to replace it quickly becomes key. Establishing a relationship with these customers prior to equipment failure will be crucial to MCE’s ability to influence the efficiency of the replacement equipment. Alternatively, partnering with the contractors who most often provide equipment replacement will also ensure customers are presented with efficient alternatives at the right time.

Seasonal Triggers. If the operation experiences regular seasonal periods of relatively lower activity, the best time to engage a customer for equipment upgrades would be a sufficient period of time before the low point of activity and would allow upgrades to be planned for that time period. Conversely, the best time to target a customer for behavioral or operational efficiency offerings might be during periods of high use when there is the most opportunity to save.

Operating Budget Cycles: Particularly for large commercial customers, an awareness of their budget planning cycle can be crucial to timing discussions about strategic and continuous energy management.


Key Market Actors There are many entities that influence the commercial sector. It is important that MCE understand the role that each entity plays and how this can affect efforts to promote energy efficiency:

Energy consumers (end-use decision maker): Owners, renters, staff, and other occupants of a commercial facility

Legislative and regulatory bodies (tax laws, regulations, codes and standards): Federal and State Legislatures, California Energy Commission, California Public Utilities Commission

City and county organizations (regulatory influence, financial incentives and customer/constituent relationships): Development agencies, Planning Commissions, environmental task forces/committees/commissions

Community organizations (customer/constituent relationships): Chambers of Commerce, RichmondBUILD, [San Pablo] Merchants Association, Marin Economic Commission, Marin Builders Association, Workforce Investment Boards, West County Council of Industries, and other trade associations and green certification programs

Business partners (marketing, outreach and implementation): Energy consultants, implementers and visionaries, and financial lending institutions

Other key market actors:



o Construction industry (customer influence): designers, architects, builders, general contractors

o Contractors (customer influence and implementation): HVAC and refrigeration, lighting, controls, installation, maintenance service companies, DG contractors

o Equipment manufacturers (equipment supply) o Vendors/commercial supply store (customer influence): retail displays and staff o Research & development industry (pipeline of new measures) o Media (marketing and outreach)


Adoption and Penetration Before implementing commercial program strategies, MCE evaluated current adoption and penetration of energy efficiency programs to identify opportunities and determine market gaps.

Existing commercial programs have focused on low-hanging fruit, which presents a challenge. However, significant opportunities remain for certain measures (LEDs and advanced rooftop HVAC controllers, for example) and in certain sectors (SMB, for example). To make significant inroads at penetrating the SMB market, energy efficiency programs must develop creative solutions to address structural market barriers like the tenant-occupant split incentive. In the large commercial sector, relatively low cost opportunities like retrocommissioning can be paired with more capital-intensive measures and deep retrofits. Trendy measures like energy dashboards or subsidized electric vehicle infrastructure can be used as a hook to get a customer in the door and interested in comprehensive IDSM upgrades. Likewise, leveraging upcoming regulations (such as building benchmarking) can be a leverage point for large commercial customers. A tailored and integrated approach is crucial to making significant progress in increasing commercial efficiency penetration rates.

Commercial participation rates vary significantly across program administrators and by sector and programmatic approach. For example, Rhode Island’s SMB direct install program achieved a participation rate of 4.8% of eligible customers between 2008 and 2013; meanwhile, New York’s SMD direct install reached 16.9% of eligible customers between 2010 and 2014.3 Participation rates for commercial financing programs are predominantly 0.5% or less. A few notable exceptions are the Kansas How $mart program, which reached 1.3% of commercial and residential customers after just 3 years of operation, and Connecticut Light & Power Commercial and Industrial and Small Business Energy Advantage programs, which reached 8.2% of commercial and industrial customers after a decade of operation.4

Likewise, penetration rates vary significantly. For example, a study on measure-by-measure savings evaluation, conducted as part of the California Investor Owned Utilities (IOU) Evaluation Measurement and Verification (EM&V) process, point to a 1-6% range for commercial measures like PC power management and LED case lighting, with a few outliers providing up to 12% savings.5 A 2011 ACEEE report on financing programs also looked at annual energy savings and found a savings range of 12-17% for eligible commercial customers.

From 2013 to present, over 1,317 businesses have been audited through the joint MCE-PG&E direct install program managed by SmartLights, and 401 projects have been completed, resulting in nearly 3,000,000 kWh in savings.

3 Lime Energy. Direct Install Utility Programs are defined as the systematic delivery of energy efficient equipment and technology to reduce customer demand on electricity. Accessed June 8, 2015. http://www.lime-energy.com/utilities 4 American Council for an Energy-Efficient Economy. September 2011. What Have We Learned from Energy Efficiency Financing Programs? Accessed June 8, 2015. http://www.pacenow.org/wp-content/uploads/2012/08/ACEEE-Sep-2011-paper.pdf 5 California Public Utilities Commission. 2013-2014 Final EM&V Plan. Accessed June 9, 2015. http://www.energydataweb.com/cpuc/home.aspx#



Based on the market characterization analysis, MCE has developed, improved upon or leveraged the commercial program offerings and projected a budget for the first four years.

Budget The proposed budget for the first four years of the commercial program is as follows:



Administrative $120,310 $142,310 $200,000 $200,000

Marketing $196,455 $177,468 $161,076 $161,076


Incentives $448,259 $632,844 $729,842 $729,842

Evaluation, Measurement and Verification (EM&V) $50,000 $50,000 $80,000 $80,000

Total $1,294,870 $1,518,379 $2,030,740 $2,030,740



Commercial Program MCE’s commercial energy efficiency program is designed to serve both large and small commercial customers. The program acknowledges inherent differences in opportunities between small and large commercial properties, and emphasizes integrating diverse program strategies under one umbrella. The program will focus on customer satisfaction with the energy upgrade experience, and ultimately drive market transformation.

The commercial program will offer low- or no-cost audits for small commercial properties, and will provide extensive audits with customizable incentives for larger properties. Upon completion of the audit,

Sector Summary Year 1 Year 2 Year 3 Year 4

TRC 1.02 1.49

Budget $1,294,870 $1,518,379 $1,953,386 $2,108,092

Estimated Savings 1,238,877 kWh

6,183 therms

2,305,924 kWh

(2,491) therms

3,500,697 kWh

(8,472) therms

4,275,464 kWh

(9,678) therms



an integrated assessment process will streamline multiple program strategies into one customer report. MCE will deploy user-friendly customer management software that allows for an ongoing relationship between the business and the program.

The program will provide participants with a SPOC who will serve as a facilitator and customer advocate, and help to guide the business owner through the process from initial contact to project completion. There are many benefits of a SPOC program. For example, projects may be more attractive to customers and easier to accomplish when all savings opportunities are bundled together and follow a clear, uniform presentation. In addition, the SPOC delivery model can provide more personalized attention and more follow-through to reduce customer confusion and increase the project completion rate. Project phasing is yet another benefit; MCE can remain in contact with participating properties over time and encourage property owners to implement projects in phases according to customer needs.

To meet aggressive targets, MCE will employ software and data analytics platforms to target buildings and tailor strategies according to demographics and energy savings opportunities.

To help ensure a successful outcome, MCE proposes a phased rollout, particularly for the strategies that are relatively new. Some of the new strategies are relatively unproven, yet represent an exciting opportunity for the communities that MCE serves to demonstrate leadership and serve as pioneers forging new approaches to energy efficiency. The rollout will likely follow the order of the strategies as presented below, depending on factors like customer demand and regulatory guidance.

Retrofit This program offers technical assistance, incentives (including kickers for whole building and multiple measures), and financing options to upgrade existing nonresidential facilities. In addition, customers who achieve zero net energy will receive a bonus incentive. Savings can be estimated with either a performance-based or widget-based approach, depending on the type of project. Rebates will be offered for lighting, HVAC, refrigeration, insulation, building envelope, plug loads, and other measures as appropriate. For a more detailed list of measures, see the E3 calculator. MCE will offer tailored approaches, recognizing that small businesses have different needs and barriers to entry than larger commercial facilities. For example, as a generalization, small to midsize businesses (the SMB sector) may face more stringent payback period thresholds – and therefore may be a better candidate for financing to ensure deeper retrofits.

Green Business Certification Green Business Certification provides proof of a company’s commitment to conserving energy and water, minimizing waste, preventing pollution, and reducing its carbon footprint. This certification can be a powerful tool to encourage companies to conduct energy assessments and invest in the efficiency of their operations. MCE partners with local governments’ sustainability departments to provide assistance in the certification process by helping customers navigate certification options and providing audit verification. MCE will facilitate marketing and outreach for green businesses to help publicize their commitment to sustainability and generate demand locally for green business. In addition, MCE will promote green building rating schemes, and educate customers on the value of building labels.



Table 3. Certified Green Businesses in MCE's Service Territory*

City/County Number of Certified California Green Businesses Benicia 1 El Cerrito 22 Marin County 434 Napa County (unincorporated) 4 Richmond 30 San Pablo 13

Source: California Green Business Program. Accessed June 24, 2015. http://www.greenbusinessca.org/

*It is important to note that this table represents the number of businesses certified through one reporting agency and is not representative of absolute numbers of green businesses across MCE’s service territory. Equally important to note is that this table includes both small cities and relatively large counties, so cannot be used to make relative numerical comparisons between the areas presented.

Demand Side Management Bidding MCE will pay incentives to customers based on measured and verified savings. The “pay-for-performance” approach would leverage AMI data and innovative using meter-based performance strategies. The intent is to capture real, verified savings in a more timely and administratively efficient way across demand side resources and allow for some load shed to be aggregated and bid into the California Independent System Operator market. Advocates explain that the approach, “is intended to spur private sector innovation and investment by building a market for efficiency bundled with DR, solar, EVs, and DG”.6 Furthermore, “if implemented correctly, this approach would create transparent and real time accounting for savings using Smart Meter data and increase quality efficiency installations by making contractors accountable to measured performance. This would ultimately reduce EE program administration and evaluation costs by making the industry (and not just the program) responsible for performance risk”.7

Another key innovation with the demand side management bidding strategy would explore the use of a transaction structure in which a third-party investor finances building efficiency upgrades. MCE would then buy the actual energy savings from the third-party investor, while the building tenant or owner would reduce electricity consumption costs. MCE would partner with industry leaders to pilot this innovative approach to using energy efficiency in procurement.

This strategy will be tailored and aligned with the comparable program offerings in the industrial sector.

Data Analytics and Behavioral Approaches These approaches offer a wealth of innovative tactics to inform, engage, and motivate customers to change their energy consumption habits. Displaying monthly usage over time and highlighting issues and opportunities for customers can encourage behavior changes in usage patterns. Many of the same tools can also serve as powerful tools to target customers for participation. Data analytics and software systems are leveraged to enable continual measurable feedback for assessing opportunities, project tracking, lead generation, and measurement and verification (M&V).8 Examples include everything from benchmarking platforms (like Energy Star Portfolio Manager), to load disaggregation software, to fault

6 TURN, Response to R.14-10-003, page 8 7 Ibid. 8 Measurement and verification differs from evaluation, measurement, and verification (EM&V) in that it is information gathered real time and analyzed in house for the purposes of immediate program improvement. EM&V is traditionally bid to an independent third party to provide an analysis of program improvement for regulatory processes.



detection and diagnostics software. These tools could also enable dashboard control of plug load technology, and provide information to the customer to control existing plug load energy use.

Behavioral approaches can couple these tools with the principles of social norming. Possible strategies include comparative energy reports, competitions, green teams, interactive energy-use kiosks, social media, and games.

Specific approaches will be tailored according to customer need and demand. Consistent with the other program strategies, data analytics and behavioral approaches will allow for integration with DR, DG, plug load control, and EVs.

This program could be combined with the retrofit program, providing rebates for lighting, HVAC, refrigeration, insulation, building envelope, plug loads, and other measures as appropriate. For a more detailed list of measures, see the E3 calculator.

Strategic and Continuous Energy Improvement (S-CEI) S-CEI aims to promote energy efficiency as a lifestyle. The typical pillars of an S-CEI program include: obtaining management support for ongoing energy efficiency enhancements, conducting ongoing assessments, trainings and improvements, and periodically developing and reviewing strategic efficiency goals. An emerging best practice is to offer energy management certification to help ensure the long-term success of projects. The goal is to create lasting changes driven from management and facilities personnel alike.

S-CEI projects can be a mix of retrocommissioning (RCx) in that they typically target more behavioral and operational measures; however, they go beyond RCx by emphasizing leadership buy-in and ongoing updates to energy management plans.

Anticipated benefits to MCE include measurement of actual savings, plus a higher likelihood of deeper savings, greater persistence, and improved customer satisfaction.

Rebates will be given for lighting, HVAC, refrigeration, insulation, building envelope, plug loads, and other measures as appropriate. For a more detailed list of measures, see the E3 calculator. New Construction This targets new facilities or major renovations that require a building permit and trigger code compliance. MCE offers education, performance-based incentives, and financing options to foster greater adoption of energy efficient and green building practices. Exceeding Title 24 requirements requires significant investment and technical knowledge. To help overcome this barrier, outreach will be conducted to architects and builders to encourage factoring energy-efficient technologies and strategies into cost estimates and design plans. Performance-based incentives will be offered to encourage investment in long-term energy savings. In addition, MCE will connect property developers with emerging financing programs that can help eligible customers to help defray the higher upfront cost (for example, PACE). Finally, customers who achieve zero net energy9 will receive a bonus incentive.

MCE will offer tailored approaches, recognizing that small businesses have different needs and barriers to entry than large commercial facilities.

Rebates will be offered for lighting, HVAC, refrigeration, building envelope, plug loads, and other measures as appropriate. MCE will evaluate offering tiered incentives for exceeding code. For a more detailed list of measures, see the E3 Calculator.

9 ZNE is defined as, “The societal value of energy consumed by the building over the course of a typical year is less than or equal to the societal value of the on-site renewable energy generated.” (IEPR Workshop on the Definition of ZNE, July 2013)



Financing MCE will help customers navigate the landscape of financing offerings available and encourage them to participate to the extent that it facilitates energy efficiency upgrades.

Green Business Loans This provides eligible customers with a low interest loan they can repay on their monthly utility bills. As of July 2015, the interest rate is 5% for $10,000 to $265,000 projects, with 5 to 10 year payment terms (subject to change). Up to 30% of the loan value can be used for non-energy related projects.

Leveraging Other Programs MCE also intends to promote all products available in its service territory including those described below.

Property Assessed Clean Energy (PACE)PACE is a tool where property owners can voluntarily opt into a tax assessment, which is then tied to the property. Advantages of PACE include transferability with the property, helping to mitigate concerns over payback period and average tenancy in a building, and the fact that it is paid on property taxes. PACE financing also enables investment in renewable energy and water savings improvements, and in some cases can be a source of financing for new construction projects.10


On-Bill FinancingCurrently the IOUs have a program where ratepayer funds are offered to offset the upfront cost of a project and the customer can pay back the improvements over time on the utility bill. This product, offered at 0% and available for loans between $5,000 and $100,000, requires participants to limit the payback of projects financed through the loan to five years. However, this program may be a powerful motivator – particularly for small business customers who may have limited time tenancy in the property. MCE proposes that commercial consumers can qualify for OBF regardless of whether their efficiency upgrades are completed through PG&E or MCE programs.

Statewide Financing PilotsThe IOUs have been directed to offer a variety of financing tools for energy efficiency improvements. MCE will monitor the development of these products and ensure that customers are made aware of them as a possible means to complete upgrade projects.

Implementation Elements Across the commercial program offerings, MCE will utilize these implementation strategies to help customers achieve energy reductions.


Single Point of Contact (SPOC). The SPOC will manage relationships with customers in the commercial program. MCE’s Customer Relationship Management (CRM) software organizes data for




lead generation and follow-up. The SPOC will use this data to engage existing participants in additional energy efficiency opportunities, converting leads into active and completed projects. Additionally, the SPOC will request feedback from customers on what types of assistance would best help them save energy, increase employee productivity and improve customer satisfaction.

Targeted Outreach. MCE will use energy usage data to conduct outreach campaigns at properties with high energy consumption. These campaigns will be aligned with trigger points. MCE will also use property specific data, such as assessor records and advanced metering infrastructure (AMI) data, to develop pre-assessment opportunity reports to present to decision makers. This information will be a powerful tool for the SPOC to use in communicating with customers about opportunities and benefits of the program.


Recognition Campaigns. MCE will host award ceremonies conducted by an emcee or local luminary to recognize customers with the greatest energy savings and contractors who provide the most customer leads or complete the greatest number of projects. These local energy efficiency leaders will be given free publicity on the MCE website and may be featured in MCE’s Energy Efficiency Demonstration Room. MCE will also work to develop labeling campaigns for customers who have completed projects, such as signage, window stickers, and other public recognition.

Referral Bonuses. Technical assistance providers, contractors, and property management professionals are encouraged and incentivized to refer participants to the program. Referrals that result in a completed project will receive a bonus.






Figure 7.Key Partners

Commercial Strategy Retrofit Green

Business Certification

Green Business

Loans

DSM Bidding

Data Analytics

and Behavioral

Approaches

S-CEI New Construction

Key

Par

tner

s

Contractors (HVAC, lighting,

etc.)

X X X X X

Community Groups and Chambers of Commerce

X X X X X X

City and County Organizations

X X X

Business Partners

(implementers, software and

web tool providers, etc.)

X X X X X X X

Trade Allies X X X X X Green Building

Groups X X X X

Property Management Companies

X X X

Commercial Real Estate

Organizations

X X X X X

Financial Lending

Institutions

X X X X X

Health and Safety MCE will not offer rebates for any upgrades that are required by federal, state, or local regulations. MCE will consider incorporating health and safety messaging in program outreach and marketing efforts. For example, MCE may work with the contractors and green business certification auditors to encourage the inclusion of gas and refrigerant leak detection in the standard certification checklist.

Quality Assurance & Quality Control This section describes the quality assurance (QA) and quality control (QC) approach for each of the seven strategies.

Retrofit. For all projects, contractors will be subject to 100% pre- and post-installation verification for their first ten projects with the program. MCE will pilot an approach to reduce the number of pre- and post-verification visits once contractors have successfully completed the ten initial projects with no



issues. At that point, MCE may accept photos and associated documentation to confirm the existing conditions and proposed replacement. After the completion of the first ten projects, MCE proposes to conduct pre-installation site visits for approximately 25% of projects, selected randomly. If contractors are found to have made errors or provided false information, they will be subject to repeating the ten successful projects at 100% pre and post site visits. In addition, Operations & Maintenance (O&M) training and documentation will be offered to ensure ongoing persistence of energy savings.

Green Business Certification. Bay Area Green Business Program responsible for QA/QC. Green Business Loans. MCE will work with lending institutions to ensure loan applications continue

to require creditworthy participants, to minimize loan default rate. Demand Side Management Bidding. A major benefit of meter-based measurement is the potential

for greater accuracy at a lower cost. However, a baseline must first be established and the model must be proven (including accounting for variables like weather, occupancy, changes in tenant behavior and production, etc.).

Data Analytics and Behavioral Approaches. For QA, MCE will launch a small-scale pilot to ensure tools work smoothly and data is accurate before opening the door to all eligible customers. For QC, MCE will leverage benchmarking tools and billing data to ensure accuracy. Program participants will be encouraged to participate in MCE’s O&M training, where appropriate, to encourage persistence of savings.

Strategic and Continuous Energy Improvement. For QA, MCE will consider employing benchmarking tools, billing and meter data analysis, facility production and operations data, weather data, or existing energy management information systems (EMIS) data in baseline calculations. For QC, retrofit savings will be estimated in accordance with the retrofit strategy guidelines; behavioral savings will be estimated according to an experimental design approach comparing a treatment group to a control group with regression analysis.11

New Construction. QA/QC is built into the savings estimation process. MCE’s new construction projects will conform to the California Energy Commission’s (CEC) standards and list of approved energy analysis computer programs that are in accordance with Title 24 code. Approved software programs include CBECC-Com, IES Virtual Environment, and EnergyPro.12 These software programs are important tools for analyzing efficiency choices and estimating savings.

MCE staff reviews all savings estimates and appropriate documents and plans to ensure reporting accuracy. Owners are encouraged to develop and implement operations and maintenance plans to ensure the building and its equipment and appliances continue to operate optimally.

11 See, for example, steps adopted from Cadmus study on “Estimating Energy Savings from CEI”: Page 2. http://www.energydataweb.com/cpucFiles/pdaDocs/903/Appendices%20A%20-%20G.pdf (accessed June 11, 2015) 12 For details, visit the California Energy Commission’s 2013 Building Energy Efficiency Standards Approved Computer Compliance Programs website: http://www.energy.ca.gov/title24/2013standards/2013_computer_prog_list.html (accessed June 25, 2015). An alternate calculation method can be employed if an application to the CEC is successfully approved. For details, visit 2013 Nonresidential Alternate Calculation Method Approval Manual: http://www.energy.ca.gov/2012publications/CEC-400-2012-006/CEC-400-2012-006-CMF-REV.pdf (accessed June 25, 2015)



Measuring Success




Performance Metrics MCE takes an adaptive management approach to continuously evaluate program performance. To enable an interactive approach, MCE has a process for gathering information: Advanced Metering Infrastructure (AMI) data, customer feedback, participation surveys, and other sources. This feedback loop enables MCE to make improvements throughout the program cycle. For the commercial sector, MCE proposes to track the following performance metrics (subject to data availability and regulatory guidance):

1. Participation Metrics. Number of participants for each county within MCE service territory. Number of hard-to-reach customers. Number of repeat participants. Number of projects provided with technical assistance.

2. Customer Satisfaction. Number of repeat participants. Number of referrals. Customer satisfaction as reported by customers.

3. Savings Metrics. Total net and gross energy and demand savings. MCE plans to employ a mix of deemed, widget-based methodologies as well as custom and performance based methodologies.

4. Measure-level Information. Total number of installed measures. 5. Incentive Metrics. Total amount offered. Largest rebate amount.

Strategy-specific Metrics:

1. Retrofit. Number of customers that implement EE projects or participate in new construction projects plus participate in DR, EV, DG, water, or other MCE or partner programs. Number of projects receiving a whole building or multiple measures kicker.

2. Green Business Certification. Increase in certification of green businesses; number of green businesses that implement energy efficiency retrofits as part of their certification process.

3. Green Business Loan. Number of loan applications. Average loan amount. Default rate. Mix of measures financed through the program.

4. Data Analytics and Behavioral Approaches. Number of participants (at both a company and employee level) in behavioral campaigns.

5. Strategic and Continuous Energy Improvement. Number of strategic energy management plans written. Non-energy benefits like increased productivity and other operational impacts.

6. New Construction. Number of customers that participate in new construction projects, plus participate in DR, EV, DG, water, or other MCE or partner programs.

Evaluation, Measurement and Verification (EM&V) To supplement any EM&V activities conducted by the CPUC, MCE proposes to undertake the following Impact and Process Evaluations.

Impact Evaluation. To evaluate the novel savings methodologies outlined in the data analytics and DSM bidding strategies, MCE will conduct side-by-side project studies comparing savings estimated by the meter and software programs to savings estimates from traditional M&V approaches (i.e., pre- and post-inspections for lighting and HVAC measures).

Process Evaluation. For the strategic and continuous energy improvement strategy, MCE proposes an independent survey of participants to gather qualitative information on program design, marketing and outreach, program implementation, participation experience, and market barriers. 13 In addition, MCE will conduct a cross-program process evaluation of the SPOC offering to determine to what degree it helps alleviate customer confusion and encourages repeat participation through project phasing.

13 MCE proposes a process consistent with that in the Cadmus study on “Estimating Energy Savings from CEI”: Page 2.


Marin Clean Energy Agricultural Sector



i

CONTENTS INTRODUCTION .................................................................................................................................. 1

MARKET CHARACTERIZATION .......................................................................................................... 1

Energy Consumption ........................................................................................................................ 2

Barriers ............................................................................................................................................... 2

Triggers .............................................................................................................................................. 3

Key Market Actors ............................................................................................................................. 3

Adoption and Penetration .............................................................................................................. 34

BUDGET .............................................................................................................................................. 45

AGRICULTURAL PROGRAM ................................................................................................................ 5

Technical Assistance and Comprehensive or Phased Projects ..................................................... 5

Peer Outreach and Training Cohorts ............................................................................................ 56

Energy Efficiency Assistance for Farmworker Housing .................................................................. 6

Financing ........................................................................................................................................... 6

IMPLEMENTATION ELEMENTS ........................................................................................................ 67

Marketing and Outreach ................................................................................................................ 67

Key Partners ....................................................................................................................................... 7

Health and Safety ............................................................................................................................ 89

Quality Assurance and Quality Control ......................................................................................... 89

MEASURING SUCCESS .................................................................................................................... 910

Logic Model .................................................................................................................................. 910

Performance Metrics ................................................................................................................... 1011

Evaluation, Measurement and Verification (EM&V) .................................................................. 1011


ii

TABLE OF TABLES Table 1. Budget Summary .................................................................................................................. 45 Table 2. Cost Effectiveness Summary ................................................................................................. 5 Table 3. Key Partners .......................................................................................................................... 78

TABLE OF FIGURES Figure 1. Logic Model ...................................................................................................................... 910


iii MCE Agricultural Sector PIP

ACRONYMS


AMI - Advanced Metering Infrastructure CPUC - California Public Utilities Commission CRM - Customer Relationship Management EM &V - Evaluation, Measurement and Verification GHG - Greenhouse Gas PACE - Property Assessed Clean Energy SPOC - Single Point of Contact TRC - Total Resource Cost USDA - United States Department of Agriculture


1 MCE Agricultural Sector PIP

Implementation Plan: Agricultural

Introduction Marin Clean Energy (MCE) has identified the agricultural sector as an important area for tailored and strategic energy efficiency program offerings.

MCE’s agricultural landscape largely consists of dairies and vineyards. The agricultural program focuses on these industries, but does not exclude other business types from its program. The program will provide tailored offerings based on the unique characteristics and opportunities of agricultural businesses in MCE service territory. For example, the seasonal nature of vineyard operations may affect the cash flow of these businesses as well as the timing of when equipment is available to be upgraded. For these customers, the agricultural program will focus on ramping up energy efficiency activity during the slow periods in the production and harvest schedule.

Dairies produce a source of energy on-site in the form of cow manure. Generating electricity from cow manure can offset electricity costs and reduce greenhouse gas emissions. Pairing bio-digesters with energy efficiency increases the proportion of on-site energy needs met through renewable energy systems. This also increases the renewable energy project’s financial viability. The program will take advantage of this by marketing these offerings together to maximize the potential savings.

Program offerings will include comprehensive rebates, technical assistance, energy efficiency education through peer working groups, and financing. The program will also aim to facilitate energy efficiency upgrades in farmworker housing by connecting them to relevant multifamily program offerings.

Depending on how integrated the product supply chain is at an agricultural facility, there may be many opportunities to collaborate with MCE’s commercial and/or industrial programs. The Single Point of Contact (SPOC) will work with the technical assistance provider to ensure that all options are presented to the customer in the assessment report.

Market Characterization MCE has analyzed energy consumption, barriers, triggers, key market actors, and energy efficiency adoption to better understand the opportunities that exist within the agricultural sector.

Although agricultural electricity use makes up a relatively small percentage of MCE’s load, agriculture is an important part of the character of MCE’s service territory, especially in Marin County and Unincorporated Napa County. In Marin, approximately 50% of the land is composed of farms and dairies. There are 255 agricultural operations in Marin, 64 of which are considered large farms. There are 159 livestock production operations producing beef cattle, dairy cows, and sheep and there are 23 dairies. Many of these dairies ship their milk to processers outside of MCE’s service territory but a few process their milk on site.1 The dairy industry is a highly regulated market. The demand for dairy is rising but state regulations cap prices, which can create financial uncertainty for farmers in the face of fluctuating feed prices.2

1 David Lewis, Paige Phinney and Elli Rilla, ed., “Amazing but True Facts About Marin Agriculture.” University of California Cooperative Extension, Marin County. http://ucanr.edu/sites/Grown_in_Marin/files/213433.pdf 2 Navigant Consulting. Market Characterization Report for the 2010‐2012 Statewide Agricultural Energy Efficiency Potential and Market Characterization Study. May 2013. Accessed July 10, 2015. http://www.calmac.org/publications/CA_Ag_Mrkt_Characterization_Final_5‐13‐13.pdf



In Napa County, the dominant agricultural activity is grape production for wine, which accounts for approximately 99% of the agricultural revenues in the county.3 Vineyards may be winery-owned, or independently owned by those who sell its grapes to wineries. Most wineries list electricity among their top costs along with labor.4

The statewide market trend for both vineyards/wineries and dairies is a splitting of the industry into large companies with global markets or small companies with local/niche markets.5

Other communities in MCE service territory – Richmond, El Cerrito, San Pablo and Benicia – are located in urban settings and do not have a high number of agricultural accounts.

The greatest opportunity for MCE’s agricultural efficiency will be in Marin County serving small agricultural operations.

Energy Consumption The agricultural sector accounts for less than 1% of the electric load in MCE’s service territory. The sector’s natural gas usage is also very small since most operations are in rural areas without access to utility natural gas service. While the primary uses of electricity vary depending on farm type, large end-uses typically include irrigation/water pumping, milking equipment, and refrigeration.

Barriers There are several barriers that may prevent the agricultural sector from fully taking advantage of energy efficiency opportunities. These barriers include:

Financial Constraints. Dairies operate under constrained cash flow due to regulations that set milk prices. Many dairies in Marin are able to increase the price of their milk by producing organic milk, while a few others process milk into value added product on site, such as cheese, allowing them to set their own prices. Other agricultural operations may face capital constraints due to fluctuating production, environmental factors such as drought, and market prices of products.

Seasonal Cycles. Agricultural operations often follow a seasonal calendar that determines high and low periods of activity and equipment use. The seasonal cycles also affect cash flow and financial planning. Energy efficiency projects need to be arranged for at the appropriate point in the planning process conducted at key points during the year. Technical assistance, long term engagement with the customer and financing may help bridge this barrier.

Equipment Downtime. Dairies generally operate on an intensive schedule with little to no down time for farm equipment. It can be burdensome and expensive for equipment to be off-line for even a short amount of time for upgrade and/or repairs.

Lack of Awareness. Compared to other regions of the state, agricultural operations in Marin are smaller with fewer employees and fewer acres in production. These operations may not have staff with energy expertise and may not know where to seek out assistance, rebates, and financing for energy efficiency upgrades.

MCE’s agricultural program is designed to address these barriers by reaching customers at trigger points and offering tailored solutions.

3 Napa County Department of Agriculture and Weights & Measures. 2014 Agricultural Crop Report. May 2015. Accessed July 10, 2015. http://www.countyofnapa.org/agcom/ 4 Navigant Consulting. Market Characterization Report for the 2010‐2012 Statewide Agricultural Energy Efficiency Potential and Market Characterization Study. May 2013. Accessed July 10, 2015. http://www.calmac.org/publications/CA_Ag_Mrkt_Characterization_Final_5‐13‐13.pdf 5 Ibid.



Triggers Trigger points are moments of opportunity when the likelihood of engaging customers in an energy efficiency program is highest. Trigger points for agricultural customers include:

Seasonal Triggers. If the operation experiences regular seasonal periods of relatively lower activity, the best time to engage a customer for equipment upgrades would be a sufficient period of time before the low point of activity and would allow upgrades to be planned for that time period. Conversely, the best time to target a customer for behavioral or operational efficiency offerings might be during periods of high use when there is the most opportunity to save.

Equipment Failure. Given capital constraints, agricultural operations are unlikely to replace equipment that is not at or near the point of failure. Furthermore, once equipment fails, the ability to replace it quickly becomes key. Establishing a relationship with these customers prior to equipment failure will be crucial to MCE’s ability to influence the efficiency of the replacement equipment. Alternatively, partnering with the contractors who most often provide equipment replacement will also ensure customers are presented with efficient alternatives at the right time.

Coordination with Renewable Energy Installation. The dairy and wine industries in particular have latched on to renewable energy as a way to distinguish their brand. There is an opportunity to further reduce greenhouse gas emission by coupling renewable energy installations with energy efficiency upgrades.

Change in Law or Regulation. MCE will use upcoming or anticipated changes in codes, standards, and regulations as a trigger point to motivate agricultural customers to act on resource conservation.


Key Market Actors There are many entities that influence the agricultural sector. It is important that MCE understand the role that each entity plays and how this can affect efforts to promote energy efficiency.

Contractors are the primary point of contact with customers. They are involved in the installation of projects and often have influence over the decision making process.

Equipment distributors and manufacturers have control over which products are available on the market.

Industry Groups and Trade Associations, such as Dairy Council of California, Organic Marin, California Sustainable Winegrowing Program, Napa Green, Sustainable Napa County, Marin Agricultural Land Trust, etc., have broad networks of members that can be potential program participants. They also have knowledge of issues affecting the industrial sector and can be valuable advisors.

Regulatory Bodies, such as Occupational Safety and Health Administration, US Department of Agriculture, US Food and Drug Administration, California Department of Food and Agriculture, California Energy Commission, and California Public Utilities Commission, set the rules that govern the market and may affect product availability, product prices, program design, etc.

Organic Certification Groups can help with marketing and providing incentive to implement energy efficiency improvements.

Academic Institutions such as University of California Cooperative Extension can provide research and case studies on resource conservation in agricultural operations and may also be a partner for marketing, outreach, and training.


Adoption and Penetration Before determining agricultural program strategies, MCE evaluated current adoption and penetration of energy efficiency programs to identify opportunities and determine market gaps.



According to the California Agriculture Market Characterization Study, vineyards and wineries have seized upon renewable energy - and to a lesser extent energy efficiency - as a means to distinguish their brand. They are seen as energy efficiency leaders in the agricultural sector.6 MCE will look for opportunities to further recognize energy efficiency leaders in its service territory.

The energy efficiency upgrades that agricultural operations have already undertaken vary by farm type. Dairies are more likely to have upgraded their lighting equipment than their pumping or cooling equipment. Although pumping accounts for a much greater share of their electricity consumption, lighting equipment has a lower first cost, which make it more feasible for the capital-constrained dairy farmer. Dairy farmers have indicated that they learn about the energy efficiency measures they install through equipment vendors, suggesting that these vendors will be an important partner in marketing MCE’s program offerings.

Since 2006, over 150 wineries have installed energy efficiency measures through PG&E’s wine industry program, although MCE has not received figures on how many of those are within MCE’s service territory. Water is a primary concern for grape-growers and many are updating and mechanizing their irrigation systems. This represents a major opportunity for MCE to influence equipment purchasing decisions. However, many agricultural customers also operate on well water so communicating long-term sustainability of the aquifer for environmental and financial reasons will be an important message.

Based on the market characterization analysis, MCE has developed, improved upon or leveraged agricultural program offerings, and projected a budget for the first four years.

Budget The proposed budget for the first four years of the agricultural program is as follows:



Administrative $46,289 $66,289 $66,289 $66,289

Marketing $46,733 $51,733 $51,733 $51,733


Incentives $177,711 $312,282 $313,021 $313,021


$19,287 $30,663 $30,663 $30,663

Total $539,084 $835,031 $835,769 $835,769

6 Navigant Consulting. Market Characterization Report for the 2010‐2012 Statewide Agricultural Energy Efficiency Potential and

Market Characterization Study. May 2013. Accessed July 10, 2015.

http://www.calmac.org/publications/CA_Ag_Mrkt_Characterization_Final_5‐13‐13.pdf





Agricultural Program Based on the sector analysis, MCE will implement the following agricultural program offerings.

Technical Assistance and Comprehensive or Phased Projects MCE will offer technical assistance to customers to help them understand the full scope of available resource conservation options. Program offerings will focus on pumps, lighting, refrigeration, water heating, distributed generation and water conservation measures.

The technical advisor will create a comprehensive report outlining the rebates available to the customer at the time as well as take note of when existing equipment may be nearing the end of its expected useful life. This information will be entered into a customer relationship management system to allow the SPOC to follow up at the appropriate points in the future when the customer may be making purchasing decisions. The SPOC will serve as a project facilitator and customer advocate to help guide business owners through the process from initial contact to project completion as well as helping to identify future participation opportunities.

After the assessment report is complete the SPOC and technical advisor will work with the customer to develop a work plan for projects they intend to complete in the short-, medium-, and long-term. The SPOC will track projects over time, allowing for energy efficiency upgrades to be scheduled around the seasonal calendar. Project phasing will be encouraged to lessen barriers related to seasonal cash flow and periods of high equipment use.

Upon project completion the SPOC will work with the customer to help them participate in local certification or recognition programs and help them market their investment in energy efficiency.

Peer Outreach and Training Cohorts MCE will convene cohorts of small farm owners to discuss experiences with energy efficiency upgrades and equipment maintenance best practices. MCE will develop targeted outreach efforts, trainings, and technical assistance for this group. When possible, MCE will aim to coordinate with industry groups to bring peer groups together at existing events. The focus of these groups will be on sharing best practices around operations, maintenance, and behavioral energy efficiency. Additionally, MCE will work with each group to develop energy management metrics. Bringing similar businesses together will foster a network for sharing best practices and benchmarking. The cohorts could also provide a valuable feedback channel for MCE on its agricultural program offerings.


Total Resource Cost Test (TRC) 1.32 1.59

Budget $680,690 $543,831

Estimated Savings 775,808 kWh 729 therms

1,432,578 kWh 810 therms



Energy Efficiency Assistance for Farmworker Housing There are approximately 500 farmworkers in Marin, many of whom are living in homes that do not meet minimum housing standards.7 MCE will use relationships with farm owners developed through this program to refer farmworkers to MCE’s multifamily program, which can provide resources and referrals to organizations that can help improve the quality of housing.

Financing MCE will help customers navigate the landscape of financing offerings available and encourage them to participate to the extent that it facilitates energy efficiency upgrades.

Financing will focus on reducing up-front cost and working around seasonal cash flow. Financing is available either through the commercial On-Bill Repayment (OBR) program offered by MCE, the Property Assessed Clean Energy (PACE) financing programs available in the MCE service territory, the California Energy Commission low interest loan program, and/or agricultural specific lending programs such as those offered by the United States Department of Agriculture (USDA). The SPOC will facilitate access to all financing programs depending on which is the best fit for the applicant. The SPOC will provide assistance in completing applications, include information about the energy impacts of the proposed project where appropriate, and provide project management and oversight of the application process to keep the process moving forward.

Implementation Elements Across the agricultural program offerings, MCE will utilize the following implementation strategies to help customers achieve energy reductions.


Single Point of Contact (SPOC). The SPOC will manage relationships with customers in the agricultural program. MCE’s Customer Relationship Management (CRM) software organizes data for lead generation and follow-up. The SPOC will use this data to engage existing participants in additional energy efficiency opportunities, converting leads into active and completed projects.

Targeted Outreach. MCE will use energy usage data to conduct outreach campaigns at facilities with high energy consumption. These campaigns will be aligned with trigger points. MCE will also use property specific data, such as assessor records and advanced metering infrastructure (AMI) data, to develop pre-assessment opportunity reports to present to decision makers. This information will be a powerful tool for the SPOC to use in communicating with customers about opportunities and benefits of the program.

Messaging. MCE will produce data-driven, segment-specific marketing materials to distribute at events, on MCE’s website, and via partner channels. MCE’s energy efficiency message will also be distributed via print ads, television, and radio channels. There will be a broad social media effort. MCE will develop its own YouTube channel, combining original content with Energy Upgrade California resources and other online videos on energy efficiency and renewable energy. This will enable the community to begin referring to MCE as a resource for energy efficiency information.

Partner Distribution Channels. Agricultural trade organizations, such as Marin Organics, have an established network of members who may be eligible for the program and who have in-depth knowledge of the needs and barriers of their members. Working with these groups to craft and disseminate marketing messages will be key to reaching potential participants. Additionally, MCE will

7 Trevor Bach, “Farm Worker Housing: 200 Units Planned,” Point Reyes Light, February 23, 2012. http://www.ptreyeslight.com/article/farm‐worker‐housing‐200‐units‐planned.



develop relationships with contractors that install measures eligible for program rebates and create co-branded marketing materials.

Recognition Campaigns. The agricultural sector is ahead of most other industries in terms of making use of resource conservation activities to differentiate and distinguish their brand. Local energy efficiency leaders will be given free publicity on the MCE website and may be featured in MCE’s Energy Efficiency Demonstration Room. MCE will also work to develop labeling campaigns for customers who have completed projects, such as signage, window stickers, and other public recognition.

Leverage Existing Certification Programs. MCE will provide support to organizations offering certification and ‘green’ labeling to promote awareness of energy efficiency and increase demand for green agricultural practices.

Key Partners MCE will partner closely with other organizations promoting resource conservation, including water districts, waste diversion groups, and groups promoting dairy digesters, solar power, and electric vehicles. MCE will communicate regularly with these entities to ensure that they are armed with the latest program information. MCE will facilitate program participants’ applications for rebates with these partner agencies and to the extent possible integrate those applications with the MCE application to streamline the participation process.

MCE will also seek to provide energy efficiency solutions in neighboring regions that may be connected to farms in MCE service territory through the supply chain. One example of this would be milk processors in Sonoma that receive milk shipments from Marin dairies.

The SPOC will coordinate with social service organizations, income assistance programs, farmworker assistance programs, and the MCE multifamily program to ensure that farmworkers living in eligible housing units are given assistance in upgrading their homes and bringing down their electricity costs.


Implementation Partners will provide technical assistance, project management, training, quality assistance, and quality control.

Contractors will install measures and help recruit participants. Local Agricultural Associations will help with marketing and outreach, recruit participants, and

provide feedback on program design. Equipment distributors will help with marketing and outreach. Local Certification Bodies (i.e. Napa Green, Marin Green Business Program). The USDA provides complimentary programs and is a source for financing and grants which can help

cover upfront costs. MCE’s Low-Income Multifamily Program will offer upgrade assistance for qualified farm worker

housing. MCE’s Existing On-Bill Repayment Programs and PACE program providers will be sources of

financing for participants to cover upfront costs.





Agricultural Strategies

Key

Par

tner

s

Technical Assistance +

Comprehensive Rebates

Peer Outreach

EE Assistance for Farmworker

Housing

Financing Marketing +

Outreach

Implementation Partners

X X X X X

Contractors

X X X X

Local Agricultural Associations

X

Equipment Distributors

X X

Local Certification

Bodies

X X

USDA X

Health and Safety Although MCE cannot offer rebates for any upgrades that are required by Health and Safety regulations, MCE will provide free technical assistance to customers that need to bring their operations up to code, and will use this opportunity to promote the installation of higher efficiency equipment at the time that the property is being updated. In addition, MCE will work with farm inspectors to ensure that they are aware of MCE’s technical assistance offering and can promote it to customers that are in need of upgrades. MCE will consider conducting outreach campaigns focused on employee health and safety, such as a pesticide awareness campaign.

Quality Assurance and Quality Control The SPOC will offer quality assurance to the program by preventing and/or resolving project management issues as they occur. Our technical assistant will work with contractors to ensure project proposals meet program requirements. All projects will be inspected post-installation to ensure proper equipment installation.



Measuring Success




Performance Metrics MCE will track the following metrics in addition to energy savings to gauge program success:

1. Number of comprehensive assessment reports delivered 2. Number of contractors providing leads to program 3. Number of participants actively participating in training cohorts 4. Number of participants that access financing through the program 5. Greenhouse Gas (GHG) emission reductions 6. Water savings 7. Number of farmworker housing units referred to the Multifamily Program 8. Increase in awareness of energy efficiency opportunities among agricultural customers in MCE’s

service territory

Evaluation, Measurement and Verification (EM&V) To supplement any EM&V activities conducted by the CPUC, MCE will undertake a process evaluation at the end of year two of the peer training and outreach cohort offering. This evaluation will focus on the effectiveness of this strategy in influencing change in the operations and maintenance at agricultural operations and the effectiveness in encouraging members to undertake comprehensive upgrade projects.

In addition, MCE will conduct a cross-program process evaluation of the SPOC offering to assess the degree to which it alleviates customer confusion and encourages repeat participation through project phasing.


Marin Clean Energy Industrial Sector



i

CONTENTS INTRODUCTION ........................................................................................................................................ 1

MARKET CHARACTERIZATION ............................................................................................................... 1

Energy Consumption ............................................................................................................................. 1

Barriers ..................................................................................................................................................... 1

Triggers .................................................................................................................................................... 2

Key Market Actors .................................................................................................................................. 2

Adoption and Penetration .................................................................................................................... 2

BUDGET ...................................................................................................................................................... 3

INDUSTRIAL PROGRAM ........................................................................................................................... 4

Technical Assistance and Comprehensive Projects .......................................................................... 4

Single Measure Rebate .......................................................................................................................... 4

Demand Side Management Bidding ................................................................................................... 4

Peer Outreach and Training Cohorts .................................................................................................. 5

Financing ................................................................................................................................................. 5

Property Assessed Clean Energy (PACE) ........................................................................................ 5

On-Bill Financing ................................................................................................................................ 5

Investor Owned Utility Financing Pilots .......................................................................................... 5

IMPLEMENTATION ELEMENTS .............................................................................................................. 5

Marketing and Outreach ....................................................................................................................... 5

Key Partners............................................................................................................................................. 6

Health and Safety ................................................................................................................................... 7

Quality Assurance and Quality Control ............................................................................................... 7

MEASURING SUCCESS ............................................................................................................................. 9

Logic Model ............................................................................................................................................ 9

Performance Metrics ............................................................................................................................ 10

Evaluation, Measurement and Verification (EM&V) ......................................................................... 10


ii

TABLE OF TABLES Table 1. Budget Summary .................................................................................................................... 3 Table 2. Cost Effectiveness Summary ................................................................................................. 3 Table 3. Key Partners ............................................................................................................................ 7

TABLE OF FIGURES Figure 1. Logic Model .......................................................................................................................... 9


iii

ACRONYMS


AMI - Advanced Metering Infrastructure CPUC - California Public Utilities Commission CRM - Customer Relationship Management DG - Distributed Generation DR - Demand Response EE - Energy efficiency EM &V - Evaluation, Measurement and Verification EVs - Electric Vehicles IOU - Investor Owned Utilities PACE - Property Assessed Clean Energy QA - Quality Assurance QC - Quality Control SPOC - Single Point of Contact TRC - Total Resource Cost


1 MCE Industrial Sector PIP

Implementation Plan: Industrial

Introduction Marin Clean Energy (MCE) has identified the industrial sector as an important area for tailored and strategic energy efficiency program offerings. Due to high energy usage, the potential for energy savings can be significant for some industrial customers. Industrial activities vary significantly by region within MCE’s territory, though most offer major opportunities for energy use reduction, water conservation, and distributed generation. Program offerings will include one-off rebates, comprehensive project rebates and technical assistance, demand side management bidding, energy efficiency education through peer working groups, and financing.

Market Characterization MCE has analyzed energy consumption, barriers, triggers, key market actors, and energy efficiency adoption to better understand the opportunities that exist within the industrial sector.

Energy Consumption Although California has the highest GDP of any state in the nation, it ranks third in terms of industrial sector energy consumption, which indicates that industries in California have already achieved a certain degree of energy efficiency.1 However, there is tremendous potential in the industrial sector for increased energy efficiency.

Within MCE’s service territory, industrial and large commercial customers account for 18% of electricity consumption and 87% of the gas usage.

Some examples of industrial customers in MCE territory include ports, refineries, glass factories, and wineries.

Barriers There are several barriers that may prevent the industrial sector from fully taking advantage of energy efficiency opportunities. These barriers include:

Financial Constraints. While some larger companies may have the capital available to undertake projects, energy efficiency upgrades need to compete against other possible investments for funding and often have to pass initial screening to be considered, such as a very short payback period (under three years).

Corporate Tax Structures. Federal tax policy on issues such as depreciation and treatment of energy costs can make weighing the costs and benefits of upgrades tricky.

Budgetary Planning Cycles. Energy efficiency programs should work around the corporate planning cycle to ensure the projects are proposed and considered at the appropriate time.

Failure to Recognize Non-Energy Benefits. Some projects will seem less attractive if the non-energy benefits are not presented alongside the energy savings.

Equipment Downtime. The lost production time resulting from equipment being off-line for upgrades is costly to a manufacturer.

Unique Processes Can be Hard to Benchmark. Each manufacturer may have unique and specific processes that make it hard to find appropriate comparison companies to determine the relative efficiency of each site.

1 Industrial Sectors Market Characterization – Plastics http://calmac.org/publications/Final_Plastics_Market_Characterization.pdf


2 MCE Industrial PIP

Proprietary Information. Manufacturers with unique processes may be unwilling to invite outside energy auditors to assess their facilities in the interest of protecting proprietary information.

Lack of Awareness. Smaller manufacturers may not have dedicated energy professionals on staff. With limited staff resources, the time needed to research energy efficient equipment and MCE programs may be a significant barrier.

MCE’s industrial program is designed to address these barriers by reaching customers at trigger points and offering tailored solutions.

Triggers Trigger points are moments of opportunity when the likelihood of engaging customers in an energy efficiency program is highest. Trigger points for industrial customers include:

Equipment Failure. Once equipment fails the ability to replace it quickly is key. Establishing a relationship with these customers prior to equipment failure will be crucial to our ability to influence the efficiency of the replacement equipment.

Coordination with Renewable Energy Installation. There is an opportunity to further reduce greenhouse gas emission by coupling renewable energy installations with energy efficiency upgrades.

Capital Improvement Campaigns. Larger industrial customers are likely to have a longer term planning horizon for managing equipment turnover or making investments/improvements, which creates an opportunity to incorporate EE into overall procurement.

Change in Law or Regulation. MCE will use upcoming or anticipated changes in codes, standards, and regulations as a trigger point to motivate industrial customers to act on resource conservation.


Key Market Actors There are many entities that influence the industrial sector. It is important that MCE understand the role that each entity plays and how this can affect efforts to promote energy efficiency.

Contractors are the primary point of contact with customers. They are involved in installation of projects and often have influence over the decision making process.

Industry Groups such as West Contra Costa Council of Industries, Concrete Masonry Association of California and Nevada, and California Manufacturers and Technology Association, have broad networks of members that can be potential program participants. They also have knowledge of issues affecting the industrial sector and can be valuable advisors.

Equipment distributors and manufacturers have control over which products are available on the market.

Regulatory Bodies such as the Occupational Safety and Health Administration, US Food and Drug Administration, California Energy Commission, California Public Utilities Commission, etc., set the rules that govern the market and may affect product availability, product prices, program design, etc.

Existing Energy Efficiency Programs (both local and federal) have been working with this segment to offer rebates, education, and advocacy around energy efficiency issues.


Adoption and Penetration Before implementing industrial program strategies, MCE evaluated current adoption and penetration of energy efficiency programs to identify opportunities and determine market gaps.



In the 2013 to 2014 program cycle, PG&E industrial programs saved 250 GWH of energy, although MCE has not received figures on how much of that occurred in MCE service territory.2 The most commonly installed measures through PG&E’s programs were process pumping, high bay fluorescents, motors and air compressors.

Based on the market characterization analysis, MCE has developed, improved upon or leveraged the industrial program offerings and projected a budget for the first four years.

Budget The proposed budget for the first four years of the industrial program is as follows:



Administrative $62,165 $62,255 $62,504 $62,504

Marketing $69,314 $69,314 $69,314 $69,314


Incentives $150,093 $176,107 $176,364 $176,364


$25,081 $27,317 $27,616 $27,616

Total $655,880 $655,834 $657,139 $657,139




Total Resource Cost (TRC) 0.65 0.95

Budget $1,309,928 $1,380,814

Estimated Savings 799,127 kWh (7,408) therms

1,262,205 kWh (12,465) therms

2 “California Energy Efficiency Statistics,” accessed July 9, 2015, http://eestats.cpuc.ca.gov/Views/EEDataPortal.aspx



Industrial Program Based on the sector analysis, MCE will implement the following industrial program offerings.

Technical Assistance and Comprehensive Projects MCE will offer technical assistance to customers to help them understand the full scope of available resource conservation options. Program offerings will focus on motors, lighting, refrigeration, water heating, distributed generation and water conservation measures.

The technical advisor will create a comprehensive report outlining the rebates available to the customer at the time as well as take note of when existing equipment may be nearing the end of its expected useful life. This information will be entered into a customer relationship management system to allow the SPOC to follow up at the appropriate points in the future when the customer may be making purchasing decisions. The SPOC will serve as a project facilitator and customer advocate to help guide business owners through the process from initial contact to project completion as well as helping to identify future participation opportunities.

After the assessment report is complete the SPOC and technical advisor will work with the customer to develop a work plan for projects they intend to complete in the short-, medium-, and long-term. Project phasing will be encouraged to lessen barriers related to restricted capital and equipment replacement schedules.

On project completion the SPOC will work with the customer to help them with local certification or recognition programs and help them market their investment in energy efficiency.

Single Measure Rebate MCE will offer single measure rebates for certain common measures as an introduction to our program. The program will work closely with our contractor network to allow them to be the primary driver of this offering and minimize any contractor participation barriers such as burdensome paperwork and long rebate turnaround time.

Single Measure Rebate recipients will be screened by the SPOC for opportunities for deeper upgrades and encouraged to receive a full assessment through the comprehensive program offering and/or engage with the demand side bidding offering.

Demand Side Management Bidding MCE will offer incentives to customers based on measured and verified savings. This “pay-for-performance” approach would leverage advanced metering infrastructure (AMI) data and innovative using meter-based performance measurement strategies to capture real, verified savings while minimizing administration expenses. Load reductions may be aggregated and bid into California Independent System Operator market. Advocates explain that the approach “is intended to spur private sector innovation and investment by building a market for efficiency bundled with DR, solar, EVs, and DG”. [1 ] Furthermore, “if implemented correctly, this approach would create transparent and real time accounting for savings using Smart Meter data and increase quality efficiency installations by making contractors accountable to measured performance. This would ultimately reduce EE program administration and evaluation costs by making the industry (and not just the program) responsible for performance risk”.[2]

The demand side management bidding strategy will explore the use of a transaction structure in which a third-party investor finances building efficiency upgrades. MCE would then buy the actual energy savings, from the third-party investor while the building tenant or owner would reduce electricity consumption costs. MCE would partner with industry leaders to pilot this innovative approach to using energy efficiency in procurement.

[1] TURN, Response to R.14‐10‐003, page 8 [2] Ibid.



Peer Outreach and Training Cohorts MCE will convene cohorts of similar small industrial customers to discuss experiences with energy efficiency upgrades and equipment maintenance best practices. MCE will develop targeted outreach efforts, trainings, and technical assistance for this group. When possible, MCE will aim to coordinate with existing industry groups to bring cohorts together at existing events. The focus of these groups will be on sharing best practices around operations, maintenance, and behavioral energy efficiency. Additionally, MCE will work with each group to develop energy management metrics. Bringing similar businesses together will foster a network for sharing best practices and benchmarking. The cohorts could also provide a valuable feedback channel for MCE on its program offerings. This program may be best delivered on a regional basis, thus MCE will coordinate with neighboring counties to the extent that there is a benefit.

Financing MCE will help customers navigate the landscape of financing offerings available and encourage them to participate to the extent that it facilitates energy efficiency upgrades. Specific financing strategies are described below.

Property Assessed Clean Energy (PACE) PACE is a tool where property owners can voluntarily opt into a tax assessment, which is then tied to the property. Advantages of PACE include transferability with the property, helping to mitigate concerns over payback period and average tenancy in a residential building, and the fact that it is paid on property taxes. PACE financing also enables investment in renewable energy and water savings improvements, and in some cases can be a source of financing for new construction projects.3


On-Bill Financing Currently the IOUs have a program where ratepayer funds are offered to offset the upfront cost of a project and the customer can pay back the improvements over time on the utility bill. This product, offered at 0% and available for loans between $5,000 and $100,000, requires participants to limit the payback of projects financed through the loan to five years. The SPOC will ensure that customers who are a good fit for this program are made aware of the offering, and will facilitate participation to the extent able.

Investor Owned Utility Financing Pilots The IOUs are currently developing financing options pursuant to CPUC regulations. MCE will closely monitor the development of these emerging tools and inform customers of the availability of new financing options as appropriate.

Implementation Elements Across the industrial program offerings, MCE will utilize these implementation strategies to help customers achieve energy reductions.


3 Some PACE providers utilize SB 555 (2012) as the enabling legislation; this follows the Mello‐Roos style assessment (rather than the Streets and Highways Code assessment enabled under AB 811 [2008]), which can be used for new construction.



Single Point of Contact (SPOC). The SPOC will manage relationships with customers in the industrial program. MCE’s Customer Relationship Management (CRM) software organizes data for lead generation and follow-up. The SPOC will use this data to engage existing participants in additional energy efficiency opportunities, converting leads into active and completed projects.

Targeted Outreach. MCE will use energy usage data to conduct outreach campaigns at facilities with high energy consumption. These campaigns will be aligned with trigger points. MCE will also use property specific data, such as assessor records and AMI data, to develop pre-assessment opportunity reports to present to decision makers. This information will be a powerful tool for the SPOC to use in communicating with customers about opportunities and benefits of the program.


Partner Distribution Channels. Industrial trade organizations, such as the West Contra Costa Council of Industries, have an established network of members who are eligible for the program as well as in depth knowledge of the needs and barriers of those customers. Working with these groups to craft and disseminate marketing messages will be key to reaching potential participants. Additionally, MCE will develop relationships with contractors that install measures eligible for program rebates and create co-branded marketing materials.

Recognition Campaigns. MCE will seek out ways to recognize customers with the greatest energy savings and contractors who provide the most customer leads or complete the greatest number of projects. These local energy efficiency leaders will be given free publicity on the MCE website and may be featured in MCE’s Energy Efficiency Demonstration Room. MCE will also work to develop labeling campaigns for customers who have completed projects, such as signage, window stickers, and other public recognition.

Leverage Existing Certification Programs. MCE will provide support to organizations offering certification and ‘green’ labeling to promote awareness of energy efficiency and to increase demand for green products and practices.

Single Measure Rebates. Participants that receive single measure rebates on process pumping, lighting and motor measures will be encouraged to work with a SPOC and undertake a full customized assessment. MCE will utilize its contractor network to promote single measure rebates and connect potential participants to the SPOC.




Implementation Partners will provide technical assistance, project management, training, quality assistance, and quality control.

Contractors will install measures and be the primary driver of new participants for the single measure rebates.



Local Trade Associations will help with marketing and outreach, recruit participants, and provide feedback on program design.

Equipment distributors will help with marketing and outreach. Lending institutions will provide the financing mechanism for MCE’s on-bill repayment offer. Local government sustainability offices or energy programs will identify key participants to facilitate

their engagement with the program. PACE program providers will be a potential source of financing for participants to cover upfront

costs.



Industrial Strategies

Key

Par

tner

s

Technical Assistance +

Comprehensive Rebates

Single Measure Rebate

DSM Bidding

Peer Outreach

Financing Marketing +

Outreach

Implementation Partners

X X X X X X

Contractors X X X X X X Local Trade Associations

X X

Lending Institutions

X X

Local Governments

X X X

Health and Safety Although MCE cannot offer rebates for any upgrades that are required by Health and Safety regulations, MCE will offer training for auditors on how to test for gas and refrigerant leaks.

Quality Assurance and Quality Control Technical Assistance and Comprehensive Projects. The SPOC will offer quality assurance to the

program by resolving project management issues as they occur. The technical advisor will work with contractors to ensure that project proposals meet program requirements. Contractors will be required to hold all proper licenses, certifications, and insurance, and the program will require the contractor to sign a form agreeing to meet minimum performance requirements in the purchasing and installation of equipment. All projects will be inspected post-installation to ensure proper equipment installation.

Single Measure Rebate. MCE will pilot a QA approach that accepts photos to confirm the baseline condition of equipment. Each participating contractor will have an introductory period of 10 projects during which 100% of projects will be inspected post-installation. Once a contractor has 10 successful projects under their belt, their QC sample rate will decrease to 25%. If any significant issues are found during a sampled inspection, the contractor’s projects will be subject to 100% post-inspection until they have again completed 10 successful projects.

Demand Side Management Bidding. Quality assurance activities will include in depth review and approval of project proposals by technical advisors. Post-installation project savings will be verified



through AMI data analysis. Quality control will be a pivotal component of this program as the pay-for-performance incentive design shifts risk to the participant. Quality control and verification activities will determine if a participant receives payment.



Measuring Success




Performance Metrics MCE will track the following metrics in addition to energy savings to gauge program success:

1. Number of comprehensive assessment reports delivered 2. Number of contractors providing leads to program 3. Number of one-off projects that lead to comprehensive assessments 4. Total amount of incentives paid out through the demand side bidding offering 5. Square footage of facilities retrofitted 6. Industrial customers in MCE service territory who report that energy efficiency is a high priority 7. Number of participants actively participating in training cohorts 8. GHG emissions reductions 9. Water savings

Evaluation, Measurement and Verification (EM&V) MCE will undertake a process and impact evaluation at the end of year two of the Demand Side Bidding Offering. In addition to quantifying the savings attributable to this program, this evaluation will identify program successes and challenges faced in the first two years of implementation and offer recommendations for program continuation and improvement.

MCE will also conduct a cross-program process evaluation of the SPOC offering to assess the degree in which it alleviates customer confusion and encourages repeat participation through project phasing.


Marin Clean Energy Workforce Development



i



Workforce Data ................................................................................................................................................... 1

Barriers ................................................................................................................................................................. 3

Triggers ................................................................................................................................................................ 4


BUDGET ................................................................................................................................................................... 5

WORKFORCE DEVELOPMENT PROGRAM ......................................................................................................... 5

Strengthen and Support Existing Programs ..................................................................................................... 5

Soft Skills and Re-entry Training Programs .................................................................................................. 5

Stackable Certificate Programs ..................................................................................................................... 5

Youth Programs .............................................................................................................................................. 5

Pre-Apprenticeship Programs ....................................................................................................................... 5

Apprenticeship and Skilled Laborers Programs .......................................................................................... 5

Professional Certifications and Continuing Education ................................................................................ 6

Targeted Training Opportunities ...................................................................................................................... 6

Direct Install Training ...................................................................................................................................... 6

Targeted Building Operator Course ............................................................................................................. 6

Fuel Switching ................................................................................................................................................. 6

Zero-Net Energy (ZNE) ................................................................................................................................... 6

Partnerships with Community Based Organizations/Local Governments ................................................ 7

IMPLEMENTATION ELEMENTS ............................................................................................................................ 7

Marketing and Outreach .................................................................................................................................... 7

Key Partners ......................................................................................................................................................... 7

Health and Safety ................................................................................................................................................ 8

Quality Assurance and Quality Control ............................................................................................................. 8

MEASURING SUCCESS .......................................................................................................................................... 9

Logic Model ......................................................................................................................................................... 9




ii

TABLE OF TABLES Table 1. Bay Area Green Building Professionals .................................................................................................. 2 Table 2. Bay Area Building Performance Institute Certifications ........................................................................ 2 Table 3. Membership of the Marin Builders Association by Contractor Type .................................................. 3 Table 4. Key Partners .............................................................................................................................................. 8

TABLE OF FIGURES Figure 1. Logic Model ............................................................................................................................................. 9


iii MCE Workforce Development PIP

ACRONYMS


BPI - Building Performance Institute EM &V - Evaluation, Measurement and Verification LED - Light-Emitting Diode WIB - Workforce Investment Board ZNE - Zero Net Energy


1 MCE Workforce Development PIP

Implementation Plan: Workforce Development

Introduction Marin Clean Energy (MCE) has identified workforce development as an important component of energy efficiency market transformation. MCE is invested in benefiting local communities by developing relevant workforce opportunities.

Contractors and workers must have the skills necessary to support program success. MCE’s growing network of trained local contractors can help achieve deeper market penetration by identifying trigger events that could bring customers into the energy efficiency program. MCE will support the success of its energy efficiency programs with complementary workforce development and training.

MCE will not be the only beneficiary of a skilled and trained workforce. The community will benefit as well. Skilled workers ensure that efficiency gains are met and that health and safety issues are addressed. Marketing, education, and outreach activities increase the demand for skilled labor in the region. Increase in skilled labor creates spillover benefits for the whole community, not just program participants. 1

MCE’s goal is to create meaningful employment pathways for workers who are new or returning to the workforce, rather than supporting one-off trainings that fail to guide participants toward future opportunities. MCE will engage community partners to ensure the inclusion of workers from disadvantaged communities in pursuing careers in the energy sector. Working with community partners helps MCE to build on existing success in the region, fill gaps in service, and focus on meaningful local workforce opportunities.

Market Characterization MCE has analyzed workforce data, barriers, triggers, and key market actors to better understand the opportunities that exist within workforce development.

Workforce Data MCE intends to focus on workforce development from a data driven perspective. Understanding the existing level of engagement on energy efficiency and green building certifications, as well as the uptake in energy efficiency programs, will help ensure trainings focus on areas where there is real opportunity. The tables below demonstrate that there are a significant number of certified green building professionals in our service area. The vast majority of contractors in the service territory are general contractors, which indicates a strong opportunity for continuing education and professional development – particularly in the zero net energy area.

1 Spillover benefits are obtained when the benefits received from the program, e.g. a more highly trained workforce, are not limited to the participants in the program but are shared more broadly across the community.



Table 1. Bay Area Green Building Professionals2

Certification Type # of Certifications

Certified Green Building Professionals 839

Certified Green Real Estate Professionals 362

Appraisers: Valuation of Sustainable Buildings (Residential)

26

Green Point Rater: New Homes 196

Green Point Advisor: New Homes 8

Green Point Rater: Existing Single Family 82

Green Point Advisor: Existing Single Family 25

Green Point Rater: Existing Multifamily 81

Table 2. Bay Area Building Performance Institute Certifications3

Certification Type # of Certifications

Building Analyst 150

Envelope Professional 38

Heating Professional 6

AC & Heat Pump Professional 2

Multifamily 62

Infiltration & Duct Leakage 3

Energy Auditor 3

2 Building Performance Institute. Certified Professionals Directory. Available online at: http://www.bpi.org/individual_locator.aspx (July 17,2015) 3 Ibid.



Table 3. Membership of the Marin Builders Association by Contractor Type4

Contractor Type # of Contractors

Appliances 2

Architects & Designers 12

Construction Management, Estimating & Scheduling 4

Drywall 3

Electrical 19

Siding 3

Fireplaces 2

General Contractors: Residential, Commercial, New & Remodels

143

Heating, Air Conditioning, & Sheet Metal 12

Insulation 2

Lumber, Hardware, Tools 9

Plumbing 26

Propane 2

Roofing 13

Solar 5

Windows & Doors 16

Barriers There are several barriers that may prevent contractors from fully taking advantage of workforce development opportunities. These barriers include:

Time Commitment. Not all contractors have the time or extra staff to commit to training. Trainings that take away from closing and completing projects create concern for their bottom line.

Cost of Trainings. Trainings, workshops, and certifications can be costly and not within a contractor’s budget. This barrier particularly impacts contractors from disadvantaged communities.

Codes and Standards. Codes and standards change every few years, and it can be difficult for contractors to stay up to date with the changes.

4 Marin Builders Association member survey. Obtained from Marin Builders Association.



Contractor and Customer Perception of Energy Efficiency Costs and Benefits. Contractors and their customers may believe that energy efficiency upgrades will increase the overall cost of a project as well as the payback period.

Background Check Policies. Existing policies on background checks may bar non-violent criminals from participating in programs or being hired.

MCE’s workforce development program is designed to address these barriers by providing a range of training opportunities that are accessible depending on schedule and can build towards larger certifications over time.

Triggers Trigger points are moments of opportunity when the likelihood of engaging contractors in workforce development strategies is highest. For example, there are times during the negotiation of a contract or the development of a new project when it is most effective to include workforce development measures. Additionally, there may be opportunities when a new workforce ordinance is passed.

MCE’s objective is to utilize these trigger points to promote workforce development that is both socially and environmentally beneficial for the community.

Key Market Actors There are many entities that influence workforce development. It is important that MCE understand the role that each entity plays and how they can affect energy efficiency workforce development:

Local Governments/California Energy Commission/Employment Development Department (tasked with workforce development): Government at all levels plays a role in workforce development and develop codes and standards, workforce agreements, and trainings to facilitate high quality energy efficiency upgrades in its communities. Local hire ordinances and other local government procurement policies may also be an opportunity to develop job creation benefits.

Legislative and regulatory bodies (tax laws, regulations, codes, and standards): Federal and State Legislatures, California Energy Commission, California Public Utilities Commission.

Contractors/Builders/Designers/Architects/Engineers: MCE will work with all levels of trades and professionals to understand their training needs and to distribute information about upcoming trainings. MCE will also work with these groups to identify key local industry leaders to deliver trainings.

Local Building Supply & Hardware Stores. MCE will partner with local building supply and hardware stores to conduct outreach and generate awareness around energy related training opportunities.

Workforce Investment Board (WIB)/Community College/Online Training Providers: Workforce Investment Boards and Community Colleges are currently major providers for training opportunities in MCE’s service territory. MCE will work with local WIB’s and community colleges to deliver MCE trainings. Online training providers may offer a flexible delivery system that works better with the trainee’s schedule.

Local Business/Organized Labor. MCE will work with organized labor unions as well as local businesses to ensure that job trainees are successful in the workforce and that job retention is an outcome of the program.

MCE tracks key market actors in order to best understand policy opportunities and challenges, and the impact of these entities on workforce development decision-making.



Budget The budget for workforce activities is imbedded within the programmatic budgets for each of the sectors.

Workforce Development Program MCE’s overall workforce development strategy is geared towards creating meaningful career paths for participants. Starting at the entry level with an emphasis on vocational opportunities and workforce re-entry programs, MCE is also working to establish relationships with labor organizations and local businesses to ensure there is an end game in sight for training participants.

MCE will sponsor, support, and leverage workforce training for contractors, implementers, operations and maintenance staff, and all others working across sectors. There will be an emphasis on stackable training credentials so contractors with limited time can build towards larger certifications. It is imperative for program success that MCE employs and deploys a skilled workforce to implement and support projects that come through its program.

Strengthen and Support Existing Programs Many high quality training programs developing an energy efficiency workforce exist in MCE’s service territory. MCE can accomplish more in partnership with existing programs than it can by working alone. MCE’s objective under the workforce development program is to strengthen and support programs that develop a robust energy efficiency workforce. MCE will leverage and support existing training programs by providing ancillary support such as soft skills training to increase the completion rate of trainees.

MCE will partner with local workforce experts to align programs throughout its service territory ensuring consistent, high quality training. Trainings will be offered throughout the service territory, providing workers with access to a wide range of trainings. MCE will influence training providers across MCE’s service territory by offering cutting edge, high quality trainings, and creating career pathways to all workers.

Soft Skills and Re-entry Training Programs MCE will partner with community based organizations to provide soft skills training to supplement participation in existing training programs for underemployed, unemployed, disadvantaged, veteran, re-entry, and displaced workers. It will also support the development of on-the-job training programs in energy efficiency.

Stackable Certificate Programs MCE will focus on providing access to stackable credential programs. Stackable credentials are training programs that offer outcomes which can collectively build towards larger certificates. Stackable credentials make the best use of available time for trainees. Stackable credentials are a component of a larger, more articulated career path and not one-off training opportunities focused solely on a near term and possibly limited time frame job opportunity.

Youth Programs MCE intends to partner with community colleges, and primary and technical schools to develop educational and vocational curriculum. MCE will also support and sponsor the development of youth training in energy services; youth are the future of the industry.

Pre-Apprenticeship Programs MCE will support the development and implementation of pre-apprenticeship programs. Pre-apprenticeship programs offer consistent and high quality training and can be on-ramps into apprenticeships programs and eventually unions.

Apprenticeship and Skilled Laborers Programs MCE will support its training program participants to continue their pathway into apprenticeship positions. MCE may offer financial support in the form of scholarships for a limited number of its program



participants emerging from the pre-apprenticeship and skilled laborer programs. MCE will also emphasize soft skills programs to support pre-apprenticeship participants in completing the programs.

Professional Certifications and Continuing Education MCE will offer professional certification and continuing education opportunities on an ad hoc basis. Professional certifications and continuing education focus on building energy skills into existing careers. Examples of this include incorporating zero net energy into existing architecture and design practices and motivating real estate professionals to understand and communicate the benefits of energy attributes on real property. As these credits are intended to supplement existing professions, they need to be highly flexible in timing and may be good candidates for online offerings.

Targeted Training Opportunities MCE will first work to understand the need for workforce before developing specific trainings. For example, data on the existing penetration of professional certifications such as the Building Performance Institute, relative to the number of Home Upgrade project jobs being performed, will help to identify if there is a need for more BPI trainings locally. Approaching training from a data driven, needs-based approach helps to ensure that there is a proper balance of training and employment opportunities and that training programs provide more meaningful outcomes.

Direct Install Training MCE will continue its direct install trainings in the multifamily program to provide Direct Install team members with the skills necessary to implement this service. Currently, MCE trains community members on how to install efficient energy and water equipment (LEDs, showerheads, faucet aerators, and pipe wrapping), program standards and safety protocols, data collection, and tenant outreach and education.

Targeted Building Operator Course To ensure properties maintain savings over the long-term MCE will offer customized Building Operations training targeted at teaching both property managers and maintenance staff the practical, hands-on, and theoretical skills that are required to optimize the performance of their properties. The course will aim to reduce the energy and water consumption at the property while simultaneously improving health, safety, and durability of the structure. This will be accomplished by developing a customized Energy and Green Building Operations and Maintenance Plan and training the building staff to implement it portfolio wide.

Fuel Switching With an increased emphasis on non-carbon heating sources, fuel switching represents a major growth opportunity for construction trades in coming years. MCE will offer trainings to contractors on the best practices for safe and proper installation of new technologies. This ensures contractors understand proper installation procedures and also increases the exposure and comfort of local contractors to these new technologies, increasing the likelihood that the contractor will recommend the technology to customers. There may be particular opportunities to emphasize training a potentially displaced workforce, such as those contractors specialized in HVAC and propane equipment.

Zero-Net Energy (ZNE) MCE will work with local and national organizations to provide training to contractors, architects, and developers on the benefits of zero-net energy design and construction. Trainings will emphasize integration of ZNE designs at the early stage of project design. MCE will offer training to assist local contractors in understanding implementation of new and emerging technologies to facilitate ZNE construction.

In order for ZNE to have mass adoption MCE will need to support training at all levels of the workforce. For example, architects, designers, and engineers will need to have the skills to incorporate ZNE practices into the design and project development phase. Contractors, builders, and laborers will need to understand how to implement the new technologies, designs, and equipment. Operation and maintenance staff will need to know how the new technologies work and how to operate, maintain, and fix the equipment.



Partnerships with Community Based Organizations/Local Governments MCE will partner with community based organizations and local governments to provide educational opportunities, conduct outreach, and create awareness around workforce development in energy efficiency and the energy sector. MCE will also work with community based organizations to identify possible candidates for workforce training programs.

Implementation Elements

Marketing and Outreach Marketing and outreach on the value of a trained workforce have an important role to play in a workforce program. Marketing and outreach campaigns that focus on the value of a highly skilled workforce can generate demand for a highly skilled workforce. These campaigns could be targeted, including publishing op-eds in local building or industry magazines. They could also be widespread, such as marketing messages posted at bus stops or other visible outdoor spaces highlighting the benefits of working with a trained building professional.

Key Partners Builders/Designers/Contractors/Architects/Engineers. MCE will build and maintain relationships

within the industry to support its workforce development program. This population is key in successful outreach, education, and development of training programs.

Economic/Workforce Development Agencies. MCE will work with local economic and workforce develop agencies (Marin City Community Development Corporation, San Pablo Economic Development Corporation, RichmondBuild) to identify and enroll underemployed, unemployed, re-entry, and displaced workers within MCE’s service territory.

Technical Assistance Providers/Raters/Inspectors. MCE will partner with technical assistance providers (AEA/TRC), [Green Point] raters, and local building inspectors to understand the challenges in the field, the training needs, and to conduct education, outreach, and trainings.

On-the-Job Training Organizations. By partnering with organizations that provide on-the-job training (both host organizations and funding organizations like the Department of Rehabilitation and Public Safety), trainees will have the opportunity to gain practical, hands-on, and paid training. This provides financial support for trainees while helping them to gain valuable experience.

Department of Education/Community Colleges/Adult Education/K-12 Schools. In order to provide proper training to and reach (future) workers of all ages MCE will seek partnerships with local education departments, community colleges, vocational programs, adult education programs, and primary schools. These partnerships may include Marin County Department of Education, Community College of Marin, Laney College, Tam Adult and local high schools.

Labor Unions. MCE will work with local labor unions to ensure MCE is developing and/or supporting appropriate pre-apprenticeship and apprenticeship programs and to connect workers with meaningful career pathways.

Builders Associations/Industry Associations. Partnering with local builders or other industry associations will provide access to the building industry workforce, a trusted resource to pass information on, and an inside perspective on the gaps in turning and the general needs of the industry. MCE will partner with builders and industry associations such as the Marin Builders Association and the Sheet Metal & Air Condition Contractors National Association.





Workforce Strategies

Key

Par

tner

s

Support Existing Programs

Developing an EE Workforce

Targeted Training Opportunities

Marketing + Outreach

Builders/ Designers/ Contractors

X X X

Economic/ Workforce

Development Agencies

X X X

Technical Assistance Providers

X X

On-the-Job Training Organizations

X X

County Department of Education

X X

Labor Unions X X X Builders

Associations/ Industry

Associations

X X X

Health and Safety MCE will sponsor multiple health and safety trainings annually to provide local energy auditors with the tools needed to identify health and safety concerns while in a building. These skills include identifying evidence of back drafting with natural gas appliances, natural gas leak detection, or other indoor air quality concerns. Weaving health and safety standards into all aspects of workforce development ensures that consistent and standard practices are implemented and creates spillover benefits for the community.

Quality Assurance and Quality Control MCE will work with accredited training certification and continuing education providers to ensure built-in quality assurance for the trainings, such as tested and approved curriculum and testing of participants.



Measuring Success Logic Model

Figure 1. Logic Model



Performance Metrics MCE will collect pre-certification information based on the specifics of the training and will survey participants at designated times (6 months, a year, 2 years) following completion of the trainings. This will measure the impacts of the certifications and create criteria for benchmarking.

MCE will additionally track the following metrics to measure the success of its workforce development program:

1. Number of new certifications a. Building Performance Institute (BPI)

i. Building Sciences Principles ii. BPI Multifamily Building Analyst iii. Residential Air Sealing and Insulation Installer iv. Building Analyst v. Envelope Specialist vi. Hydronic Heating System Professional vii. Multifamily Building Operator viii. Heating Professional ix. Air Conditioning and Heat Pump Professional

b. Air Barrier Association of America Certification Training c. Passive House d. Weatherization & Direct Install Trainings e. US Green Building Council Professional Courses

i. Fundamentals of Building Green ii. Construction Management iii. Operations & Maintenance Essentials

f. Green Point Rated (Rater or Advisor) i. Green Point Rated Core ii. Green Point Rated New Home iii. Green Point Rated Existing Home iv. CA Multifamily Existing Building

2. Number of training participants 3. Contracts awarded ($ amount) for workforce development 4. Number of Workshops/Trainings/Certifications Sponsored 5. Jobs/Paid Internships/On-the-Job Training Opportunities Created & Retained (from MCE awarded

contracts)

Evaluation, Measurement and Verification (EM&V) Certifications to Project Conversion: Are building professionals putting the certification into action? MCE proposes a process evaluation on the ability of program participants to implement the skills obtained through sponsored education and training activities.

Job Creation and Retention. A key component of the workforce program logic is the ability to train workers who will be capable of retaining jobs over time. MCE proposes an impact assessment to ascertain the ability of the program to place workers in jobs and the retention of those jobs over a year or longer.
