Guidebook For Energy Efficiency Evaluation, Measurement .
Guidebook for Energy EfficiencyEvaluation, Measurement,and VerificationA Resource for State, Local, andTribal Air & Energy OfficialsU.S. Environmental Protection AgencyJune 2019
AcknowledgementsThis document, Guidebook for Energy Efficiency Evaluation, Measurement, and Verification: A Resourcefor State, Local, and Tribal Air & Energy Officials, was developed by EPA’s State and Local Energy andEnvironment Program within the Climate Protection Partnerships Division of EPA’s Office of AtmosphericPrograms. Nikolaas Dietsch managed the overall development of the Guidebook. Julie Rosenberg andCarolyn Snyder provided organizational and editorial support for the entire update of the document.This guidebook builds on previous Evaluation, Measurement, and Verification efforts at EPA and reflectsextensive public comments received during those efforts.EPA would like to acknowledge the many other EPA employees and consultants whose efforts helped tobring this product to fruition.The following contributors from EPA (unless otherwise noted) provided significant assistance for thisupdate through their technical and editorial review of one or more of the Guidebook’s sections: JoeBryson, Beth Conlin, Robyn DeYoung, Tom Eckman (through Lawrence Berkeley National Laboratory),Natalie Mims Frick (Lawrence Berkeley National Laboratory), Maureen McNamara, and DeniseMulholland.A multidisciplinary team of energy and environmental consultants, led by ICF, provided extensiveresearch, technical input and review, editorial review, and graphics support for this Guidebook. Keycontributors from ICF (unless otherwise noted) include: Miriam Goldberg (DNV GL), Tara Hamilton, BradHurley, Wendy Jaglom, Cory Jemison, and Logan Pfeiffer. Pat Knight of Synapse Energy Economics andSteven Schiller of Schiller Consulting, Inc. also provided technical review, research, writing, and graphicsupport for the document.For more information, please contact:Julie RosenbergU.S. Environmental Protection AgencyState and Local Energy and Environment ProgramTel: (202) 343-9154Email: rosenberg.julie@epa.gov1
Table of ContentsAcknowledgements . 1Table of Contents . 2Acronyms and Abbreviations . 31. Introduction . 51.1. Audiences and Uses . 61.2. Experience with EM&V . 81.3. Scope, Contents, and Use with Other EM&V Resources . 82. EM&V Practices for Quantifying Energy Savings . 102.1. Establishing a Baseline . 102.1.1. Discussion . 102.1.2. Applicable Practices . 172.2. Selecting a Method . 19Discussion . 19Applicable Practices . 202.2.1. Deemed Savings . 212.2.2. Direct M&V . 242.2.3. Comparison Group . 302.3. Determining the Time and Location of Energy Efficiency Savings . 352.3.1. Discussion . 352.3.2. Applicable Practices . 402.4. Determining Duration of Savings (i.e., EUL) . 432.4.1. Discussion . 432.4.2. Applicable Practices . 452.5. Verifying Savings . 472.5.1. Discussion . 472.5.2. Applicable Practices . 472.6. Accounting for Additional Aspects of Savings Quantification . 482.6.1. Independent Variables . 482.6.2. Interactive Effects . 512.6.3. Transmission and Distribution Savings and Adders . 532.6.4. Double Counting . 542.7. Characterizing Accuracy. 562.7.1. Discussion . 562.7.2. Applicable Practices . 573. EE EM&V Protocols and Guidelines . 58Glossary of Terms . 61References . 662
Acronyms and MWMWhNAAQSNARUCNEEPNGONRELAmerican Council for an Energy-Efficient EconomyAssociation of Edison Illuminating Companiesadvanced metering infrastructureAmerican Society of Heating, Refrigerating, and Air-Conditioning Engineersbusiness as usualcommercial and industrialbuilding energy code and equipment energy standardcombined heat and powerCalifornia investor-owned utilitiescarbon dioxideCalifornia Public Utilities Commissionconservation voltage reductionDepartments of Environmental Qualitydistributed energy resources(United States) Department of Energyenergy efficiencyenergy efficiency resource standardelectricity generating unit(United States) Energy Information Administrationevaluation, measurement, and verification(United States) Environmental Protection Agencyenergy services companyeffective useful lifeefficiency valuation organizationforward capacity market(U.S. Department of Energy) Federal Energy Management Programheating, ventilating, and air-conditioninginvestor-owned utilitiesInternational Performance Measurement and Verification Protocolintegrated resource planningindependent system operatorISO New Englandkilowattkilowatt-hourkilowatt-hour per hourLawrence Berkeley National Laboratorylifetime equivalent annual savingslight-emitting diodemeasurement and verificationmegawattmegawatt-hourNational Ambient Air Quality StandardsNational Association of Regulatory Utility CommissionersNortheast Energy Efficiency Partnershipsnon-governmental organizationNational Renewable Energy Laboratory3
O&MPUCRCTRERMIRTFRTORULSEE ActionSIPSPBT&DTRMUMPVSDoperations and maintenancepublic utilities commissionrandomized control trialrenewable energyRocky Mountain Institute(Northwest Power and Conservation Council Northwest) Regional Technical ForumRegional Transmission Organizationremaining useful lifeState and Local Energy Efficiency Action NetworkState or Tribal Implementation Planstringent practice baselinetransmission and distribution (system)technical reference manual(United States Department of Energy) Uniform Methods Projectvariable speed drive4
1. IntroductionInvestments in energy efficiency (EE) in homes,businesses, and other facilities are a proven and costeffective strategy for meeting electricity demand andavoiding generation that would otherwise occur atelectricity generating units (EGUs).1 All 50 statescurrently administer some type of EE program, andmost states have mandated EE resource standards(EERS) (ACEEE, 2018a). Some states also haverequirements for electricity suppliers to achieve “allcost-effective EE” (Gilleo, 2014). City, town, and otherlocal governments are also advancing EE initiativessuch as building energy codes, district energy andcombined heat and power (CHP) programs, EEprograms targeting low-income and multifamilyresidents, and EE data sharing and transparency.To confirm that EE policies and programs are resultingin expected levels of energy savings, jurisdictionstypically adopt quantification and verificationapproaches that are well-documented, rigorous, andconsistently applied. These approaches help states,local governments, and tribes carry out key functionsand responsibilities, and ensure that EE policies andprograms are achieving their goals. This may includehelping:Key Terms for EE ActivitiesEE measure: A single technology, energy-usepractice, or behavior that, once installed oroperational, results in a reduction in theelectricity use required to provide the same orgreater level of service at an end-use facility,premise, or equipment connected to the deliveryside of the electricity grid. EE measures may beimplemented as part of an EE program or an EEproject.EE project: A combination of measures,technologies, and energy-use practices orbehaviors that, once installed or operational,result in a reduction in the electricity use requiredto provide the same or greater level of service. EEprojects may be implemented alone or as part ofan EE program.EE program: Organized activities sponsored andfunded by a particular entity to promote theadoption of one or more EE projects or EEmeasures that, once installed or operational,result in a reduction in the electricity use requiredto provide the same or greater level of service inmultiple end uses, facilities, or premises.EE activity: An EE measure, EE project, or EEprogram. Air officials at Departments of Environmental Quality (DEQ) confirm that EE policies andprograms included in air quality implementation plans are achieving real energy savings andemission reductions over the planning or compliance period; Energy officials at Public Utility Commissions (PUCs) and State Energy Offices (SEOs) establishrigorous, consistent, and transparent approaches for quantifying and verifying EE, whileensuring that EE policy and program goals are achieved and that customer funds are prudentlyallocated; and All stakeholders share information, coordinate on quantification and verification procedures,and make EE planning and investment choices that support key jurisdiction-wide goals such asensuring energy-system reliability, a strong economy, and a healthy environment.1This Guidebook focuses on energy efficiency in the electricity sector as opposed to the energy sector in general,although many of the EM&V approaches described can be applied more broadly.5
Considerations for Air OfficialsA key audience for this EM&V Guidebook is state, local, and tribal air officials interested in including EE policiesand programs in their voluntary and regulatory air quality implementation plans. This document does notpresume that air officials should achieve EM&V expertise, directly participate in the quantification of EE savings,or manage EM&V oversight activities. Rather, they can use the document to gain a working understanding ofEM&V and support discussions with counterparts in energy agencies.To inform these objectives, the following information is provided throughout this document: Key EM&V terms and definitions; Text boxes with “considerations for air officials”; and Text boxes with “questions for air officials.”Jurisdictions have found that strong partnerships between air and energy officials can help all partiesunderstand the details of EE policies and programs, quantify the resulting energy savings and emissionsreductions, and support achievement of key policy and planning objectives.The set of procedures, methods, and analytic approaches for quantifying and verifying energy savings isknown as evaluation, measurement, and verification (EM&V). EM&V compares actual energy use afteran EE project or EE measure has been implemented with the best estimate of the likely energy use thatwould have occurred in the absence of that project or measure.1.1. Audiences and UsesEPA is providing this Guidebook for Energy Efficiency Evaluation, Measurement & Verification (EM&VGuidebook) to help state, local, and tribal air and energy officials—as well as key stakeholders such asutility EE implementers—take steps to learn about, establish, or refine their EM&V approaches.1.1.1. Use by Air OfficialsEE can avoid generation that would otherwise occur at EGUs, which can reduce air pollution andimprove ambient air quality. In some jurisdictions, EE policies and programs are an importantcomponent of plans for achieving these environmental objectives. One example is the inclusion of EEactivities as an emissions reduction strategy in an air quality implementation plan, such as a State orTribal Implementation Plan (SIP/TIP) for complying with various sections of the Clean Air Act. Anotherexample is using EE in a plan or “path forward” under U.S. EPA’s Advance Program,2 which promotesvoluntary actions in attainment areas to reduce ozone and/or fine particle pollution (PM2.5) to helpthese areas continue to meet National Ambient Air Quality Standards (NAAQS). Using EE in an air qualityimprovement can, under some circumstances, avoid the need to install traditional emissions-controlstrategies and lower the overall cost of complying with applicable emissions goals or requirements.In the context of using EE in a SIP/TIP, jurisdictions typically want to confirm that EE policies andprograms will:2Jurisdictions participating in EPA’s Advance Program develop a plan or “path forward” for improving local airquality, implement the measures identified in their path forward, and revisit their path forward periodically toexpand and update it. More information is available on EPA’s Advance Program website.6
Result in real energy savings and emission reductions over the planning or compliance period;and Achieve emission reductions over time in a manner that is quantifiable, permanent,enforceable, and additional.3Applying the practices described in this EM&V Guidebook can provide air and energy officials with acredible basis for determining whether EE activities are achieving intended levels of energy savings andemissions reductions. The EM&V Guidebook can also help air officials understand the basics of EM&Vand engage in discussions with their energy counterparts at SEOs and PUCs. Jurisdictions have foundthat strong partnerships between air and energy officials can help all parties coordinate on policy goals,understand the details of EE policies and programs, and quantify the resulting energy savings andemissions reductions in a manner that is well-documented, rigorous, and consistently applied.Questions that Air Officials Can Ask—Getting StartedThis EM&V Guidebook is intended to help air officials gain a working understanding of EM&V and supportdiscussions with their counterparts in energy agencies. Air officials interested in using EE in a voluntary orregulatory air quality implementation plan can ask the following questions to learn more about EM&V practicesin their jurisdiction: How can I be confident that savings from EE programs and policies in an air quality implementationplan will result in real emissions reductions? What are the main things I need to know about EM&V? Where can I find a description of applicable EM&V practices? What agencies and other entities are involved with EM&V? What are the key technical topics involved in conducting EM&V? How can I get involved with EM&V for purposes of representing my agency’s perspective?1.1.2. Use by Energy OfficialsEnergy officials may use this EM&V Guidebook to refine existing EM&V approaches or establish newones. For example, officials at PUCs and SEOs can use information in the Guidebook to update or reviseexisting EM&V protocols and guidelines that apply to EE implementers operating in their jurisdiction.4This helps ensure that EE policies and programs are achieving intended results, and that customer funds—typically collected as a surcharge on energy bills—are prudently allocated. EE implementers such asinvestor-owned utilities (IOUs), public utilities, and private companies (e.g., energy service companies(ESCOs)) can similarly use this EM&V Guidebook as an information resource to support quantificationobjectives, such as establishing a baseline or selecting EM&V methods. Independent firms hired by3Additional means that reductions from EE are “surplus” or “incremental” to the baseline identified in a SIP. Forexample, a state using the “baseline emissions projection pathway” as described in the U.S. EPA’s EnergyEfficiency/Renewable Energy Roadmap Manual must document assumptions about which EE policies are alreadyincluded—and which are incremental to—the electricity use forecast submitted as part of the SIP. Given thatelectricity load forecasting may occur at a single- or multi-state level, coordination between agencies, EEimplementers, and entities conducting EM&V can help identify which EE savings are included in the baselineforecast and which are not.4See Section 3 for a list of EE EM&V protocols and guidelines.7
energy officials and EE implementers can also use this EM&V Guidebook as a resource for interpretinglocal protocols and guidelines. Finally, representatives of EE-related nongovernment organizations(NGOs) and advocacy organizations can employ approaches described in this EM&V Guidebook whenexamining whether a jurisdiction’s EE policy and program regulatory goals are being achieved in a costeffective and equitable manner.1.2. Experience with EM&VJurisdictions began to scale up EE as an energy strategy in the 1970s. Since then EM&V has been criticalto EE’s success, credibility, and expansion. EM&V methods have been refined and impro
Guidebook for Energy Efficiency Evaluation, Measurement & Verification (EM&V Guidebook) to help state, local, and tribal air and energy officials—as well as key stakeholders such as utility EE implementers—take steps to learn about, establish, or refine their EM&V approaches. 1.1.1. Use by Air Officials
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