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Draft Implementation Plan WorkshopMCE Agricultural and Industrial Resource (AIR) Program
Agenda
• Welcome & Introductions• MCE AIR Program Development• AIR Program Overview• Implementation Plan Narrative• Supporting Documents• Questions
Open & Public Process
This workshop is intended to elicit feedback on MCE’s DRAFT Implementation Plan for Agricultural and Industrial Energy Efficiency Program
Feedback received may directly inform the program design. Input may be provided today or via email through Tuesday, May 28th, 2019 to [email protected]
Welcome & Introductions
Alice Stover
Jenn Kreutzer
Joey Lande
Daniel Genter
MCE Team and Roles
OUR MISSION
Renewable EnergyStable, Competitive Rates
Local Economic & Workforce BenefitsEnergy Efficiency
Address climate change by reducing greenhouse gas emissions
MCE 2019 Service Territory
Load and Account Distribution
Small COM
Medium to Large COM / IND
Agricultural
Contra Costa 12.1% 45.7% 0.4%Marin 5.3% 10.5% 0.1%Napa 4.3% 10.2% 0.6%Solano 1.4% 7.9% 1.6%
Load Distribution Among Target Customers
Small COM
Medium to Large COM / IND
Agricultural
Contra Costa 43% 7% 1%Marin 23% 2% 0%Napa 12% 2% 3%Solano 5% 1% 2%
Account Distribution Among Target Customers
Program Background
Timeline
May 31, 2018: MCE EE Business Plan Approved
11.28.2018: MCE 2019
ABAL approved
12.7.2018: RFQ
Released for Ag/
Industrial programs
1.31.2019: Evaluations
and Interviews
completed
3.29.2019: Launched new contract with CLEAResult for
program design and
implementation services
5.15.2019: Implementation
Plan Draft Workshop
5.28.2019:Implementation Plan complete
Program Background
Rationale for a single customer-facing program and implementation partner
• Improve cost effectiveness• Streamlined, lean program management • Similar customer opportunities• CLEAResult’s sector and geographic experience• Allows for engagement of a customer’s entire footprint,
regardless of sector“MCE’s industrial program is designed to serve both manufacturing and refinery facilities as well as some large agricultural producers.”-MCE Business Plan
MCE AIROverview
Emphasis on Customer Experience
Single Point of Contact (SPOC)
Putting customers on a path that serves all their conservation needs through one point of entry
Program Overview
MCE Agricultural and Industrial Resource Program is a comprehensive third-party program aimed to deliver reliable and persistent electric and gas savings within MCE’s service area.
PrgID Sector Implementer Type Program Type Intervention Strategy
MCE10 Industrial Third Party Resource Downstream
MCE11 Agricultural Third Party Resource Downstream
3 Year Program BudgetsMCE10 - Industrial 2019 2020* 2021* Total
Admin $31,227.37 $58,056.22 $58,056.22 $147,339.81Marketing and Outreach $13,291.14 $24,710.16 $24,710.16 $62,711.46Direct Implementation -
Non-Incentive (DINI) $339,512.76 $631,203.53 $631,203.53 $1,601,919.82
Incentives $306,391.39 $569,626.09 $569,626.09 $1,445,643.57Total $690,422.66 $1,283,596 $1,283,596 $3,257,614.66
MCE11- Agricultural 2019 2020* 2021* TotalAdmin $23,430.86 $38,312.96 $38,312.96 $100,056.78
Marketing and Outreach $9,972.75 $16,306.94 $16,306.94 $42,586.63
Direct Implementation -Non-Incentive (DINI) $353,357.97 $577,793.25 $577,793.25 $1,508,944.47
Incentives $379,687.42 $620,845.84 $620,845.84 $1,621,379.10
Total $766,449 $1,253,259 $1,253,259 $3,272,967
* 2020 and 2021 Program Years will be finalized in the Annual Budget Advice Letter
3 Year Projected Net Impacts
* 2020 and 2021 Program Years will be finalized in the Annual Budget Advice Letter
Program Goals
2019 Program Year 2020 Program Year* 2021 Program Year*
net kWh net therms net kWh net therms net kWh net therms
MCE10-Industrial
556,588 71,153 1,179,161 110,000 1,179,161 110,000
MCE11-Agricultural
799,656 30,937 709,938 10,000 709,938 10,000
Forecasted Cost Effectiveness
Program 2019 TRC
MCE10- Industrial 1.60
MCE11- Agricultural 1.52
Program 2019 PAC
MCE10- Industrial 2.05
MCE11- Agricultural 1.77
Program Coordination
The Program will coordinate with Pacific Gas and Electric Company to ensure double dipping risks are mitigated, to minimize potential customer confusion, and ensure customers are receiving maximum benefit
Implementation Plan Content
Recap of MCE’s Business Plan
• Targeted outreach though bill and building data analysis • Convene cohorts of similar customers to learn from
experiences• Promote strategic and continuous energy improvement• Technical assistance throughout project• Integrated assessment process that streamlines multiple
program offerings into one customer report• Utilize a pay-for-performance incentive structure• Rebates and financing to overcome cost barriers
Implementation Plan Summary
From the IP• Program Objectives and
Description• Customer Outreach • Project Pathways• Metrics• EM&VFrom the Manual• Customer Eligibility• Measure Eligibility• QA and QC
Program Objectives
• Raise awareness about energy use and opportunities among agricultural and industrial customers
• Provide customers with a single point of contact for their energy journey, simplifying otherwise complex decisions, while also connecting them to other available local and regional offerings
• Ensure program impacts are verifiable and defensible and that incentive payments align with realized savings where feasible.
• Achieve three-year energy reductions goals and achieve program cost-effectiveness targets
Program Description
• Comprehensive assessments, comprehensive strategies
• Tailored approach for each customer based on their needs
• Multiple pathways to serve customers and claim savings:
• Deemed/Prescriptive• Custom• Strategic Energy Management (SEM)• Normalized Metered Energy Consumption (NMEC)
Customer Outreach
Outreach Strategies• Direct customer engagement• Coordination with MCE Account Managers• MCE events, including “Power Hour” workshops • Targeted outreach through utility bill analysis• Marketing collateral, and case studies• Collaborate with other community based
organizations within the MCE network
Customer Outreach: Customer and Trade Ally Portals
Market BarriersMarket Barrier Risk Management Strategies
Customer or building owner does not prioritize energy efficiency
• MCE offers incentives and programs to reduce payback • Planning assistance to enhance energy savings.• Educate customers about the long-term benefits of energy
efficiency, available incentives, and how to quantify benefits
Customers typically replace equipment only upon failure
• The Program educates trade allies and customers about available energy efficient choices before equipment fails and encourages businesses to plan for equipment replacement or replace early
Due to engineering and technical skills required, project lead, installation, and verification times can conflict with program dates and deadlines
• The Program will work closely with participants and trade allies to track project status and provide support to keep projects moving forward.
Trade allies lack info to upsell projects, and most identified projects are past the design phase, which is too late to affect efficiency choices
• The Program educates trade allies on how to identify potential project opportunities.
• Demonstrate competitive advantages
Process Flow Chart
Initial Customer Outreach
Project Initiation & Development
Custom/Deemed
SEM
NMEC
- Find the pathway that best fits the customer
- Customer enrollment- Application development- Initial engineering QC
- Targeted outreach- Customer leads from The
Program and MCE Account Managers
© 2017 CLEAResult. All rights reserved. 27
SEM Process
Strategic planning with utility
Recruit cohort of facilities
Ensure executive sponsorship and identify champion
Train champion and team site-by-site and
by cohort
Conduct treasure hunt of facility
Develop facility
energy model for
continuous energy use and savings
tracking
Make continuous
improvements
Develop register of
future projects
Use energy model to
measure and report
savings
Communicate, evaluate,
report, educate and
celebrate success
continuously
Strategic Energy Management (SEM) Process
SEM and NMECSEM• Generally, consistency with the California Industrial SEM Design and M&V
Guides• Proposing SEM modifications to fit MCE customer base, leverage best-
practices and ensure cost-effective delivery. These modifications include• schedule changes, workshop spacing, shifting workshop topics, EMA timing, and
milestone incentives and payment timing. NMEC • Program will follow the guidelines set by the Draft Rulebook for Custom
Program and Projects Based on Normalized Metered Energy Consumption (NMEC).
• Program rules will be update as guidelines for the implementation of NMEC projects and program evolves
Metrics
Metric Agricultural Industrial
Capturing Energy Savings Yes Yes
Greenhouse Gas Emissions Yes Yes
Penetration of EE programs and Diversity of Participants
Yes Yes
New Participation No Yes
Cost per Unit Saved Yes Yes
Baseline / Consumption reduction
No Yes
EM&V
• MCE proposes to develop a comprehensive EM&V plan with Energy Division input after the filing and approval of the Implementation Plan
• Separately, MCE intends to complete independent analyses of all meter-based savings claims
Program Manual
Program Manual –Customer Eligibility
• Located in MCE’s Service Area• Receives electric or gas service
from MCE or PG&E• Pays Public Purpose Program
Surcharge on their utility bill• Non-Residential Customer
engaged in industrial or agricultural business or operations
ProcessHeat RecoveryProcess ControlsProcess OptimizationVFD on Process FanVFD on Glycol PumpPumpingVFDs on Well PumpVFDs on Booster PumpIrrigation ControlsPump Upgrades
Program Manual – Expected Measures
Compressed AirPressure Drop ReductionCompressor SequencingLightingLighting UpgradesLighting ControlsOtherHigh efficiency ventilation fans and controlsLow pressure Irrigation SystemWastewater upgrades
RefrigerationRefrigeration ControlsEvaporator UpgradeVFD on CondenserSteam SystemsBoiler ControlsEconomizerBlow Down Heat RecoveryInsulationBoiler Upgrade
Program Manual – IncentivesCustom, NMEC
Category $/kWh $/therm
Targeted Measure $0.20 $1.50
Standard Measure $0.15 $1.50
Early Adopter Multiplier 20% 20%
Measure Platform Payment Timeline
Custom, Deemed 100% of the incentive paid upon project completion and verification of energy savings
NMEC
20% of Year 1 estimated incentive paid upon execution of the NMEC Enrollment Agreement100% of Year 1 incentives minus the 20% enrollment payment will be paid upon MCE approval of Year 1 energy model
100% of Year 2 incentive paid upon MCE approval of Year 2 energy model
Program Manual – IncentivesSEM Milestone Payments
Milestone Quantity RateInitial: Energy and Relevant variable Data
and Workshop Attendance 1/participant $2,000/participant
Subsequent: Updated Data and Opportunity Register 4/participant $1,000/participant
SEM Performance Payments
Category $/kWh $/thermBRO Measure (EOY 1 and
EOY 2) $0.03 $0.25
Targeted Measure $0.20 $1.50
Standard Measure $0.15 $1.50
Quality Management
• Quality Assurance– Standardize processes & train staff– Seek feedback from all stakeholders– Data review & documentation
• Quality Control– Administrative & Technical Reviews– Pre & Post Inspections
Timeline and Milestones
2019 Milestone TimelineImplementation Plan Workshop May 15, 2019
Comments/Feedback Period May 15 - 24, 2019
Incorporation of Comments and Feedback May 15 - 28, 2019
Implementation Plan Filing May 28, 2019
Targeted Outreach for Project Recruitment June 2019
CPUC Reporting Monthly and Quarterly
Reference / Document Locations
• Draft Implementation Plan: https://www.mcecleanenergy.org/regulatorydocuments/#ee_program
• California Industrial SEM Design Guide: https://www.cpuc.ca.gov/General.aspx?id=6442456320
• California Industrial SEM M&V Guide: https://www.cpuc.ca.gov/General.aspx?id=6442456320
• Draft Rulebook for Custom Program and Projects Based on Normalized Metered Energy Consumption (NMEC):
https://www.cpuc.ca.gov/General.aspx?id=6442456320
Questions
Supplemental Slide: Program DesignThe program is designed to meet the needs of a diverse range of agricultural and industrial customers, guiding each participant to the path that’s right for them. The Program will:• Combine incentives and other financing resources to reduce costs, align with
benefits, and reward savings.
• Carefully consider customer journeys and value propositions
• Form meaningful links between energy savings and internal priorities
• Reduce complications associated with vetting and approving new products
for incentives
Supplement Slide: Process Flow Chart
Custom/DeemedEngineering Pre-
Review & Approval
InstallationEngineering Post-
Review & Approval
Incentive Payment
NMECOpportunity
Register & Initial Incentive
InstallationModel
Development, Review & Submittal
Evaluation of Year 1, Year 2 &
Incentive Payments
SEMKick-off Meeting, Workshops 1-2,
EMA #1, & Treasure Hunt #1
Workshop 3-6, Energy Map, EMA
#2, & Treasure Hunt #2
Workshop 7, EMIS Planning/
Implementation
Evaluate, Report, & Educate
Accomplishments
Supplemental Slide: SEM Modeling Tool
Supplemental Slide: MCE AIR Logic Model
