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Section 5. Measurement and Verification. (A) Within 180 days after the effective date of this act, the Commission shall promulgate rules regarding measurement and verification of electricity and natural gas savings under this section, including — (1) Procedures and standards for defining and measuring eligible electricity savings and natural gas savings which shall — (a) specify the types of eligible energy efficiency and energy conservation measures; (b) require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and post-participation time periods used for estimating savings be adjusted, as appropriate, to account for changes in weather, level of production, and building area; (c) accountfortheusefullifeofelectricityandnaturalgassavingmeasures; (d) allow for the use of deemed savings values, where justified, for specific, commonly-used efficiency measures; (e) allow for savings from a program to be estimated based on a statistical sample of participating customers and extrapolated to all participating customers; and (f) exclude savings that –– (i) are not properly attributable to measures carried out by the entity seeking the credit for such savings (or a designated agent of the entity); or (ii) have already been credited under this section to another entity or to the same entity; and (2) Procedures and standards for third-party verification of reported electricity savings or natural gas savings. Monitoring and verification is an important part of an EERS program. Monitoring and verification help ensure that savings targets are met and provide information on program accomplishments. They also provide the necessary credibility, transparency, and consistency needed to use energy efficiency as a resource to help meet economic, environmental, and energy system goals (Nadel 2006). Evaluation, measurement and verification procedures are typically determined by the state utilities Commission. Estimated savings should be adjusted for changes in weather, production levels and changes in building floor area to ensure that savings are attributable to energy efficiency measures. For CHP savings, for example, the energy usage can be read from a meter on the system. Based on data from the power pool, a formula can be used to determine the annual energy savings relative to buying power from the local utility. For programs aimed at commercial and residential customers, savings can be estimated by taking a sampling of participants, determining the energy savings that are attributed to a certain program through billing analysis, extrapolating those estimated savings to all participants and then comparing the energy use of participants versus non-participants (which provide the business-as-usual baseline). Savings should be documented on a program-by-program basis. Energy savings are reported to the state utilities Commission, which reviews the reported savings and makes revisions if deemed necessary (ACEEE 2009). In Texas, for example, utilities pay incentives to commercial and industrial project sponsors for certain measures installed in new or retrofit applications. Typical projects include chillers, lighting, and industrial process retrofits. For residential and small commercial programs they provide incentives for installation of a wide range of measures that reduce system peak demand, energy consumption and energy costs. In Texas, utilities pay incentives to Energy Efficiency Service Providers and customers with incentives based on deemed energy savings when available. Deemed savings estimates are predetermined, validated estimates of energy and peak demand savings attributable to specific common energy efficiency measures. These estimates are periodically updated. Otherwise, the Energy Efficiency Service Providers and utilities must follow the measurement and verification protocol adopted by the Public Utilities Commission of Texas. In this case, the incentives are based upon verified peak demand or energy 14PDF Image | Energy Efficiency Resource Standards
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