Shaping the Tradability of U.S. Energy Efficiency
This webinar is part of Minnesota’s stakeholder engagement effort and seeks to inform participants about the intended functionality, governance, and benefits of the NEER.
About the Webinar
Tennessee, five other states – Georgia, Michigan, Minnesota, Oregon, Pennsylvania – and partners The Climate Registry (TCR) and the National Association of State Energy Officials (NASEO) have secured a Department of Energy award to create the foundation for a National Energy Efficiency Registry
The NEER is a central repository that will allow the public and private sectors to transparently track energy efficiency attributes associated with energy efficiency programs and initiatives, as well as help demonstrate progress towards energy goals and potential compliance with existing and future state and federal environmental regulations. The NEER will also be able to track energy conservation and other types of reduction efforts. This future platform has the potential to catalyze new levels of voluntary public and private investment in energy efficiency.
We heard from Jessica Burdette, State Energy Office Manager at Minnesota Department of Commerce (COMM), Division of Energy Resources, Jenna Jorns, Policy Associate at The Climate Registry, and Pat Stanton, Director of E4TheFuture.
Additional Audience Q&A
Full recording (mp4)
Additional Audience Q&A
At the end of the webinar, there were a few residual questions from the audience. We promised to address those with written comments from our panel experts.
Have NEER stakeholders and leaders been collaborating or aligning with the Uniform Methods Project?
Yes, the NEER Policy Team has been working with some of our stakeholders on a sub-group to define QA/QC requirements and have referenced the Uniform Methods Project as a model for the NEER.
Do you have plans for inner operability with other environmental attribute trading systems?
Yes, representatives of several existing registries are participating in the NEER Multi-stakeholder Working Group and Steering/Advisory Committee. We are also communicating with EPA. Actual interoperability issues will be resolved in later phases of NEER development, during the functional requirements development phase.
Sub-topic -- Credits & Retirement:
Is the value of a credit based on a measure life?
For example, a lighting program has a measure life of 7 years. Under the NEER’s current draft Principles and Operating Rules, the EE Provider would be issued tradable instruments for each year of savings under the lighting program. Instruments are only issued after the savings for each year has occurred. So, the project resolves in a stream of annual savings over 7 years.
Under the NEER protocol that is being developed, if a utility pays an incentive for an efficiency project, would the efficiency credits default to the utility?
It depends. The default assumption is that avoided electric energy is experienced behind a customer’s meter. A PUC can assign the NEER instrument value to the utility and/or the utility can take ownership of that value as part of the rebate transaction with the customer. Currently, many utilities have standard boiler plate language on all rebate forms indicating that by participating in the program, the customer is transferring all attribute rights (ownership) to the utility. As a practical matter, most individual customers do not have the capacity to perform the necessary EM&V to create attribute value in the NEER, so transferring the rights to the utility is not an issue. With larger customers, there may by case-by-case negotiations.
Sub-topic -- Quality Assurance:
Why would an energy efficiency provider utilize the Basic QA (versus the Enhanced QA) if no instruments created?
NEER Basic has been created as a minimum disclosure standard to participate in the NEER, so that users would be able to use the NEER to track and report savings that have not been verified. The NEER Policy Team sees the NEER Basic QA/QC option as a starting point from which State Compliance/Certification Programs (SCCPs) can build their program-specific requirements.
Do you have insight as to who would purchase/trade credits under the Basic QA protocol and who would be purchase under the Enhanced QA protocol?
Because NEER Basic is only self-reporting (no verification), the NEER Policy Team is recommending that tradable credits not be created. As stated above, the NEER Policy Team sees the NEER Basic QA/QC option as a starting point from which State Compliance/Certification Programs (SCCPs) can build their program-specific requirements. We envision that NEER Enhanced, which includes verification and submission of an M&V report, will issue credits and be used in the voluntary market which generally requires third-party verification.