HomeMy WebLinkAbout13 Adoption of AB 2021 10-Year Energy Efficiency Targets
AGENDA ITEM 13
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MEETING DATE: March 3, 2021
TO: Board of Directors
FROM: Michael Salmon, CFO
SUBJECT: Consideration of Adoption of AB 2021 10-Year Energy
Efficiency Targets
APPROVED BY______________________________
Brian C. Wright, Interim General Manager/
Water Utility Director
RECOMMENDATION:
Adopt Truckee Donner Public Utility District’s 10-year energy efficiency targets for the
period 2022 through 2031 as Net Energy Savings of 3,079 MWh and Net Demand Savings
of 331 kW.
BACKGROUND:
SB 1037, signed in September 2005, requires Publicly-Owned Utilities (POUs) to invest in
cost-effective energy efficiency as the first resource in their electric resource portfolio. This
is the funding source for the District’s energy efficiency and payment assistance programs
and is collected from customers on monthly electric bills.
AB 2021, signed in September 2006, requires POUs to identify all potentially achievable
cost-effective electricity efficiency savings and to set annual targets for energy efficiency
savings and demand reduction over 10 years. The first report was due on or before June
1, 2007. AB 2021 required updates every 3 years afterwards. The bill also requires POUs
to report those targets to the California Energy Commission (CEC) within 60 days of
adoption. The District adopted targets in 2007 and again in 2010 and 2013.
AB 2227 was signed in September 2012. AB 2227 requires updates every four (4) years
instead of every three years. The District last adopted targets in 2017. The targets ranged
from 1.1% in 2007 to .45% in 2017 of MWh sold per year. The District has had a solid
track-record of cost-effective energy efficiency programs and solid results. However, due
in part to saturation of previous program - such as energy efficient lighting - and efficiency
upgrades to Codes & Standards, cost-effective energy efficiency opportunities have been
dwindling. The District has also started to shift resources to electrification and overall
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Greenhouse Gas (GHG) reduction opportunities.
The District is required to establish the 2022-2031 energy efficiency targets and report
those targets to the CEC. On behalf of its members, the California Municipal Utility
Association (CMUA) issued a Request for Proposals and, as a result, has contracted with
GDS Associates (GDS) to develop the goals for energy efficiency for each CMUA member
utility (including the District). GDS s reviewed historical and proposed sales by customer
class, energy efficiency technical and cost potential, and the feasible goals that could be
set by the District for the next 10 years to meet this potential.
A summary of the market potential by customer class is attached for both gross and net
energy savings and demand savings targets (Attachments 1 & 2). The incremental market
potential goals represent the feasible energy efficiency savings that can be achieved by the
District and that are proposed for adoption by the District. Targets are presented as both
gross and net - and the District does use both for program tracking purposes - but for
formal adoption and reporting to the CEC the District uses Net Energy Efficiency Targets.
The proposed District 2022-2031 10-year Net Energy Efficiency Targets are:
Net Energy Savings: 3,079 MWh; and
Net Demand Savings: 331 kW
These proposed targets represent a range of .35% to .1% of MWh sold per year based on
the recommendation of GDS. While these Targets are approximately 45% below the 10-
year targets set in 2017, they do continue to demonstrate the impacts of saturation and
diminishing returns for energy efficiency programs. They are however, robust targets and
will require innovative District programs to exceed the targets. The funding levels for
energy efficiency programs remains consistent, while the return on investment does reflect
the realities of conservation saturation. Funds spent to achieve these targets will also need
to be balanced against opportunities in electrification and overall cost-effective GHG
reduction. Staff will bring such future opportunities to the Board for review.
Adopting these ten year energy efficiency targets meets regulatory compliance obligations.
The information gained from the GDS study helps the District to understand the energy
efficiency market potential and design programs that are tailored to meet the needs of the
District’s community.
FISCAL IMPACT:
The costs for the GDS study are included in the dues paid to CMUA and are included in
the approved FY21 budget. The costs for the District’s energy efficiency programs are
included in the annual budgets and will be included in future years. There is no direct fiscal
impact associated with this Action Item.
ATTACHMENTS:
Attachment 1: Net Energy Efficiency Targets
Attachment 2: Gross Energy Efficiency Targets