This brief, "Designing and Executing Measurement and Verification Standards for C-PACE Programs: Lessons Learned from Leading C-PACE Programs", examines and explains practices to demonstrate energy savings in existing Commercial Property Assessed Clean Energy programs. The brief is designed to inform C-PACE program administrators on the design and execution of measurement and verification (M&V) standards through the experience of C-PACE programs in Michigan, Texas, and Wisconsin. In addition, the brief includes case studies of C-PACE programs: Texas PACE, Lean & Green Michigan, and PACE Wisconsin. Each case study details that program’s technical standards related to measurement and verification (M&V), examines the program’s motivation for implementing those technical standards, and reports on the program administrator’s experience with those standards. Key findings include: -Look to other states and jurisdictions for lessons learned on designing and executing M&V standards for C-PACE programs. The case studies presented illustrate some of these lessons. -Consider what each standard will require in terms of compliance for the property owner and enforcement for the program administrators. Successful standards strike a balance between ensuring project performance and avoiding burden on participants. -Put a mechanism in place to enforce each standard, or at least to effectively encourage property owners to comply. -Enforcement of ongoing reporting requirements is especially difficult once the C-PACE loan has been fully funded. -Consider methods to simplify annual performance reporting processes. For example, after the property owners approve releasing their consumption data, program administrators can work with utilities and/or property owners to automate the process of transferring that data from utility feeds or building management systems for ongoing reporting. -Standardize M&V practices across programs to the extent possible to encourage participation by building owners, contractors, capital providers, and third-party program administrators. -Communicate the value proposition of M&V to property owners by framing M&V as a mechanism that ensures projects deliver the intended outcomes and benefits, rather than as a technical obligation.

This paper identifies likely drivers of building efficiency over the next ten years and expectations for how efficiency markets may evolve over this period. To prepare these predictions, we conducted an extensive literature review, interviewed 22 experts, reviewed legislation and executive orders in 12 states, and implemented a detailed questionnaire completed by 41 efficiency practitioners. The two most important drivers revealed by our research are (1) public policies and regulations, particularly those associated with climate change mitigation and adaptation and (2) the cost of energy relative to the cost of delivering efficiency. Other important drivers are technology changes, economic conditions, social priorities, and industry (including utility) business practices for increasing the uptake of efficiency in buildings. Our research indicates that efficiency markets will increasingly focus on supporting building decarbonization and enabling demand flexibility through the use of controls in grid-interactive efficient buildings and communities. Efficiency improvements for specific technologies (e.g., heat pumps, controls, and windows) and technological advances not specific to energy technologies (e.g., interoperability, artificial intelligence, and universal internet access) will improve the efficacy of efficiency measures and actions. Marketing of efficient products and services will increasingly focus on grid services, decarbonization, non-energy benefits for consumers, and integration with other distributed energy resources (DERs). We anticipate increased investment in disadvantaged and historically underserved communities, recognizing the social, health, and safety benefits of efficient energy usage and remediating historical biases. Lastly, we predict that while state and local government actions will vary, jurisdictions will increase their efficiency goals overall.

This slide-deck report identifies drivers of energy efficiency in buildings over the next 10 years, for all fuels. The report also provides insights on what the future of efficiency may look like in that time period and considers other distributed energy resources, as well as decarbonization and demand flexibility, to the extent they are intertwined with efficiency activities. Understanding market drivers and possible future market attributes for energy efficiency can help policy makers, regulators and industry make informed decisions—for example, how best to design policies and investments to support desired outcomes.