Energy Justice and Workforce Development

CLIMATE JUSTICE & WORKFORCE DEVELOPMENT 2ND QUARTER 2022

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is produced by: CONTENTS Association of Energy Services Professionals 02 03 06 08 15215 S. 48th St., Suite 170 Phoenix, AZ 85044 Are Utility-Tech Partnerships Workforce Development Effective Workforce Training Weaving energy equity (480) 704-5900 the Answer to Easing After the Pandemic: Programs Critical To into utility programs AESP.ORG the Energy Burden? Building an Equitable Meeting the Demands of and utility culture Clean Energy Workforce a New Energy Economy EDITORIAL TEAM BY AARON BERNDT BY BEN NATHAN AND MIRIAM STEIN BY LIZ KELLEY, PHD BY ELLEN STEINER Ian Motley, Manager, Marketing & Communications 11 14 17 18 Kimani Johnson, Coordinator, Marketing & Communications Healthy, affordable A Utility’s All-In Approach Headline: Sending out Closing the Clean housing for all: It’s the to Clean Energy Workforce customer rewards? Time Technologies Skills Gap: GRAPHIC DESIGN right thing to do Development Yields to ditch paper checks Advancing Energy Efficiency BY RACHEL DORTIN AND Results—and Jobs  Through Heat Pump Training Splash Printing & Marketing SHANNON STENDEL BY DAVID WHITE for HVAC Contractors BY SELIM KARABULUT BY ROBERT FOLEY AESP STAFF 21 25 27 30 Jennifer Szaro, President & CEO Shannon Britton, Vice President, Appliance Efficiency Can Community Energy Community-based Social Bringing Energy Innovation Finance & Member Services is Essential (and Help Achieve Climate Marketing Can Energize to a Hub of the Traditional Jenny Senff, Senior Director of Content and Achievable!) for Equitable Goals and Create a More the Impact of Energy Energy Industry through Programs Decarbonization Equitable Society? Efficiency Programs Public-Private Partnerships Ashley Wilson, Director of Membership Jennifer Lee, Program Manager BY ANNE ARQUIT NIEDERBERGER BY GEMMA LA GUARDIA BY DR. HAL T. NELSON BY GILLIAN WARD Ian Motley, Manager, Marketing & Communications 32 34 36 Kimani Johnson, Marketing and Communications Coordinator ComEd’s Clean Energy Building the Clean Energy Learning to Sell Energy Kristi Hewitt, Member Associate/Executive Workforce Development Workforce of Tomorrow Solutions More Effectively Administrator Targets Communities In Need Kelly Thorsgard, Manager, BY GIANGABRIEL MASONI DOBLES BY MARK JEWELL Management Information Systems BY K.C. DOYLE Angela Glover, Administrative Specialist www.aesp.org | second quarter 2022 1 BOARD OF DIRECTORS Marie Abdou, National Grid Ariana Arguello, FortisBC Dave Backen, Backen Consulting Chris Baggett, APS Peter Banwell, ENERGY STAR®, US EPA Raegan Bond, Dunsky Energy + Climate Advisors Knox Cameron, DTE Art Christianson, The Home Depot Charmaine Cigliano, Orange & Rockland Sarah Colvin, Opus One Solutions William Ellis, Pepco Mark Gentry, Sodexo | Roth Joyce Bodoh, Rappahannock Electric Cooperative Jeff Brown, Public Service Company of Oklahoma Sue Hanson, Tetra Tech (Board Chair) Jeff Ihnen, Michaels Energy James Linder, TVA Danielle Marquis, Franklin Energy Tim Michel, PG&E Laura Orfanedes, ICF Quinn Parker, ENCOLOR Brian Pippin, JEA Laura Schauer, ILLUME Advising Katie Vrabel, Buckingham Companies Scott Alan Davis, SEEL LLC All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written permission from AESP. The opinions expressed by the authors do not necessarily reflect those of AESP.

r i i - ch P r n rships h ns r o sing h n rg Burd n? By Aaron Berndt Americans in nearly every corner of the country and has the potential to save on costly infrastructure Elevate has seen the impact of savings from energy are looking for ways to lower their energy bills and upgrades by offsetting the need to build peaker plants efficiency and demand response programming on save money as we enter summer. This is particularly and on-demand generation capacity. Through demand communities with lower incomes. With energy bill true for households with lower incomes that spend as response programs, utilities are able to manage and savings, families have built up emergency savings high as 30% of their incomes on energy bills. Smart mitigate spikes in demand to enhance grid reliability funds to protect against unexpected medical bills or car technology paired with utility demand response while reducing emissions. repairs, supported savings accounts for their children programs can automate energy use to lower energy who dream to be the first generation in their families bills and give families one less thing to worry about. P r n rship i ds to go to university, taken family trips to the Grand Yet, we are still very much in the early stages of smart Canyon for the first time and even returned to Europe thermostat adoption. Only 17% of Americans own a p r icip ion after immigrating to the U.S. to show their children their smart thermostat, 3% of whom have lower incomes. homeland. Utility-technology partnerships may hold the key to Google Nest has long-standing partnerships meaningful energy savings, particularly for families with more than 70 utilities across the country and is Evens posed important questions. Are all of our who need it most, while advancing our climate goals. continuing to refine and expand access to residential programs really reaching the folks that need it most— programming. In the summer of 2020, Google Nest and if not, why not? How can we increase equity in Sm r chno og nd ran a helpfulness campaign with Consumers Energy of the delivery of clean energy programs? What we know Michigan and Uplight, a utility software and services for sure, she said ––partnerships between utilities and n rg progr mming provider, that provided close to 100,000 free Nest technology providers to design programs that drive thermostats to Michigan residents in order to lower smart technology adoption is an opportunity to protect Energy bills represent a culmination of thousands of energy bills and drive enrollment in demand response vulnerable ratepayers from undue energy burdens and small choices people make throughout the month, like programs. We’ve seen how partnerships designed to can support the transition to a clean energy future. turning on the AC, running the dishwasher, heating a streamline enrollment can have meaningful positive shower, and more. To see meaningful energy savings impacts on program success, and ultimately, ratepayer About the author on an electric bill, ratepayers need to do more than approval. just turn off the lights when they leave a room. Many Aaron Berndt households are on Time-of-Use (TOU) rate plans, Google also recently launched Nest Renew, a which are based on how much energy you use and service that makes it easy for Nest thermostat customers Aaron Berndt is Head of Energy when you use it. This structure encourages people to support clean energy at home. Nest Renew works to Industry Partnerships at Google, to undertake activities that use a lot of energy when help ratepayers automatically respond to price signals where he leads the team that demand on the grid is low, in order to reduce costs. But embedded in their utility rate, prioritizing clean and less works with utility partners to complying with a TOU rate requires awareness and expensive electricity. develop customer-focused energy timely action on the part of the ratepayer, which is just programs that leverage Google Nest one more decision to juggle. Through the service, users also have the opportunity products. Prior to joining Google, to support nonprofit partners in the Nest Energy Impact Aaron was a leader in PG&E's Smart technology and associated utility Program, like Elevate, that are working for an equitable Customer Energy Solutions team, with responsibility for the delivery programming take the guesswork out of this equation. clean energy future, expanding clean energy access, of key products and programs in PG&E's portfolio. Aaron holds a Smart thermostats paired with utility demand response increasing energy affordability and supporting clean Bachelor of Mechanical Engineering from the University of Minnesota programs can automate household energy use and energy careers. I spoke with Elevate CEO, Anne Evens, and an M.B.A from U.C. Berkeley Haas School of Business. keep energy consumption low during peak hours, about how smart home technology programs can help without ongoing management from the ratepayer. close the energy equity gap. “When we intentionally focus the implementation of clean energy programs on Smart home devices can go beyond helping the communities that need it most, we are decreasing ratepayers. At scale, this type of programming is their energy burdens, improving their comfort, and particularly effective in the race to meet climate targets creating local jobs at the same time,” Evens said. 2 Association of Energy Services Professionals

WORKFORCE DEVELOPMENT AFTER THE PANDEMIC Building an Equitable Clean Energy Workforce By Liz Kelley, PhD We have long known that the demographics State of the Trades: Demographic Disparities of our energy efficiency workforce is not in Energy Careers representative of the public it serves. As our clean energy industry recovers from the Installing Energy Efficiency (EE) upgrades is a critical piece of the clean energy pandemic, we have an opportunity to re- puzzle. Given the sizeable workforce that is needed to carry out this transition, envision our workforce to better address there is an opportunity to transform the current workforce to ensure that the clean structural and historic inequities in access, energy workforce is as diverse as the people and communities they serve. wealth, and opportunity. But how do we ensure that the green recovery is accessible to To date, that has been far from the case. According to a 2019 Brookings a broader swath of the U.S. population? Institute analysis of Bureau of Labor Statistics (BLS) occupational employment numbers, only 3.7% of insulation workers were women and only 5.9% were Black or African American. For context, women made up 47% of the national workforce while Black and African American workers made up 12.3 % of the workforce.1 Except for an overrepresentation of Latino workers in the insulation trade (43.3% compared to 17.6% of the national workforce), our industry is not inclusive in the trades. We are also missing opportunities in the ranks of environmental scientists and geoscientists where women (33%), Black and African American (4.8%), and Hispanic or Latino workers (12.4%) remain underrepresented.2 1 https://www.brookings.edu/blog/the-avenue/2020/09/10/how-clean-energy-jobs-can-power-an-equitable-covid-19-recovery/ 2 https://www.brookings.edu/wp-content/uploads/2019/04/2019.04_metro_Clean-Energy-Jobs_Report_Muro-Tomer-Shivaran-Kane.pdf#page=29 www.aesp.org | second quarter 2022 3

Brookings' research shows that many and how do we make sure all those levers are When we asked community members to share their occupations within the clean energy economy are being pulled within the space overall. We identified concerns, workforce development and economic higher paying despite having lower educational three things that were barriers to entry: Awareness, development were at the top of their list—not smart requirements when compared to all jobs nationally. Access, and Affordability.” grid infrastructure or energy efficiency. According to the Brookings report: “Workers in clean energy earn higher and more equitable He went on to explain that not only is there In addition to creating jobs in underserved wages when compared to all workers nationally. a lack of awareness of energy efficiency and communities, workforce development efforts may Mean hourly wages exceed national averages clean energy jobs as a career path, but there help to increase program participation. In a 2019 by 8 to 19%. Clean energy economy wages are are significant barriers to entry, including a lack study of nonparticipants across Massachusetts also more equitable; workers at lower ends of the of affordable and accessible opportunities for energy efficiency programs, ILLUME found that income spectrum can earn $5 to $10 more per training new entrants into the field. The approach nonparticipants were more likely than participants hour than other jobs.”3 But our industry must not that Urban Efficiency takes is to create awareness to live in rental units, have a high school education rely on the low educational requirement of clean campaigns to raise awareness of clean and green or no secondary school degree, be low-to energy jobs as a substitute for doing the intentional energy jobs, the ensure that there’s access to moderate income, and speak a language other work of reaching out to communities to ensure a localized training opportunities at an entry level. than English at home. Investing in workforce diverse workforce.4 He noted that creating accessible trainings was development to train contractors can provide jobs both about ensuring that trainings were physically for the community and make it easier for people in Redressing Historic Wrongs (or virtually) accessible and affordable – including the community to access programs. Through Workforce any required transportation costs, but also that the Development trainings they offered are at the right level. He notes This is something that Johnson highlighted that many people entering the industry already during our conversation, he noted the importance As an industry, we are at an inflection point have some level of experience, either contracting of having techs and staff who look like the people to redistribute the benefits of clean energy and or construction experience or in building science. they’re serving, especially in areas where utilities energy efficiency jobs more equitably across the As a result, many training centers do not offer have historically disinvested in the community. labor force. Clean energy jobs tend to pay better the most entry-level training. He explained: “We “[There is a] culture of distrust around utilities in than average employment and many jobs have are one of the only minority-owned BPI training general – one of the things we found is that because lower barriers to entry in terms of certifications centers within Illinois and Indiana, we did that to of the dis-investment over the years it has created than jobs with comparable salaries. However, make sure …that [we could offer] those very entry a lot of distrust and they don’t believe the reasons significant barriers still exist. -level certifications that not many of the existing that utilities give – but when firms come in like us providers offer. When you’re talking about who are knowledgeable and personable and look Our team recently spoke with Darnell Johnson, increasing diversity, many individuals coming from like them, it makes them a lot more comfortable. CEO and President of Urban Efficiency Group diverse populations do not have that experience We train our techs to understand why the utility (UEG). Johnson leads Illinois’ first native, minority- and they need a more entry-level access point and partners are offering these programs – they must owned utility implementation and sustainability training to get into the space. So Urban Efficiency understand that because it’s their job to give that design firm. His work with UEG has assisted provides that training. Among the more advanced information to customers if it hasn’t been provided.” thousands of underserved residents in Northwest certifications, that fundamental, first step, entry- Indiana, the greater Chicagoland, and Milwaukee level certification, called Air Leakage control Developing a more diverse energy efficiency to reduce their energy burden by delivering energy installer, was not being offered and still is not being workforce could also enable more people to efficiency and community sustainability services offered widely within the industry. By providing that participate in programs, as implementation team while working toward carbon neutrality. training Urban Efficiency can take individuals who and contractors are able to (literally) speak their have virtually no experience within this space and language and reflect their community. During our conversation he explained their get them up to speed and certified so they can get approach: “The space of EE is not as divers e as into the workforce and start earning a living wage. As utilities consider investing in workforce I or any of the owners would like it to be, so our That allows for more equity to be brought into the development efforts, our team has the following philosophy, in emerging and nascent markets has industry by providing access for folks that have recommendations: been ‘if something doesn’t exist, you have to build traditionally been left behind.” it,’ so Urban Efficiency took on the heavy lift of RECOGNIZE THE GAPS: identifying what are the gaps, what are the barriers As an industry, we must focus workforce to entry and how do we solve those barriers development efforts to ensure that the new clean What does the current EE workforce look like and close those gaps so we can create greater energy workforce reflects the demographics of the in your area and how does that differ from the representation of diverse contractors, greater community and service territory. This can provide broader workforce? Are there communities that workforce liquidity of a more divers e workforce, an opportunity to rectify the historic imbalances of are under-represented? Are there communities who is served by the clean energy industry. The that don’t participate in programs? How might you ILLUME team is supporting a resilient community better serve those communities through expanding pilot in a historically underserved community. your trade ally networks? 3 https://www.brookings.edu/research/advancing-inclusion-through-clean-energy-jobs/ 4 https://e2.org/wp-content/uploads/2021/04/E2-2021-Clean-Jobs-America-Report-04-19-2021.pdf 4 Association of Energy Services Professionals

CREATE STRUCTURE AND SUPPORT: THESE CONSIDERATIONS CAN HELP UTILITIES AS THEY NAVIGATE BUILDING AND FUNDING A For trade allies, especially for minority, women, WORKFORCE DEVELOPMENT PROGRAM and disabled veteran-owned business enterprises (MWDVBEs), providing specific training, Incubating Entrepreneurs: ComEd’s Diverse mentorship, and other support can help people Energy Efficiency Service Provider (EESP) begin work in a new trade or position. As part Incubator Program of our contractor research for an evaluation of a workforce development program, our ComEd’s Diverse Energy Efficiency Service Provider (EESP) Incubator Program interviews highlighted the importance of informal links community-based workforce development and trade organizations to increase mentorships (of being ‘taken under the wing’ of access to energy efficiency jobs and projects for minority, women, and disabled a more established contractor). While valuable, veteran-owned business enterprises (MWDVBE) in its service territory (ACEEE these informal mentorships may perpetuate a 2020). The program provides a range of support to contractors including training workforce with similar demographic makeup as the contractors on ComEd’s Energy Efficiency Portfolio offerings, back-office training current workforce. Creating structured programs and support, and assistance on certifications and project financing applications. and explicit mentorships and opportunities for More broadly, program services help contractors identify, address, and resolve learning and training can expand these ‘informal’ barriers to building a successful business in the energy efficiency industry. The knowledge sharing opportunities. We highlight program’s goal is to enable diverse contractors to join the EESP Network and ComEd’s Diverse EE Supplier program as an complete energy efficiency projects. Once ComEd accepts cohort members into its example of a program focused on developing EESP Network, outreach specialists work with the utility’s implementing contractors MWDVBE trade allies (see sidebar). to help cohort members obtain marketing materials and correctly submit project application materials. INVEST THE TIME AND MONEY: ComEd has accepted eight cohort members into its EESP Network and three Building relationships in a community takes have submitted energy efficiency projects or fulfilled product orders for the time and repeated engagements. Especially portfolio. ComEd is also fostering a mentorship relationship between current EESPs for communities that have been underserved, and cohort members. It will continue to support cohort members’ business growth there may be skepticism that the utility outreach plans by offering additional training through its CONSTRUCT Program, which trains is real and/or that the investment is not a one- individual workers to apply for entry-level positions in the construction industry. off. Gaining trust will take time and consistent effort. Similarly, building a workforce, especially Spotlight: SoCalREN ACES Pathway expanding a workforce to include those historically marginalized, requires an investment of time and Architecture, Construction and Engineering money. If utilities want to transform their workforce, Students (ACES) Pathway Program they will need to commit the time and money to doing it well. Sponsored by Southern California Regional Energy Network (SoCalREN), the ACES program encourages high school students to explore careers in FOCUS ON YOUTH: science, technology, engineering, arts, and mathematics. Participants co-enroll in community college courses. The credits they earn are transferable to campuses Several successful workforce development within the California State University and University of California systems, helping to programs like SoCalREN’s ACES Pathway remove barriers to higher education. In addition, ACES offers students paid summer program (see sidebar) target young people in high internships. The program further addresses financial barriers to higher education school to provide the training needed for a clean and job training by providing students with related necessities, from proper work energy career and cultivate interest in clean energy gear to various training and enrollment fees. jobs. Currently, six high schools participate in ACES, with nearly 400 students WORK WITH COMMISSIONS: enrolled in the program. Utilities working to expand their workforce may want to consider working with commissions and partnering with other stakeholders to defray the cost of investments in training. About the author Liz Kelley, PhD Dr. Elizabeth Kelley is an anthropologist with nearly 15 years of experience conducting ethnography and qualitative research. Her formal training in linguistic and cultural anthropology helps her identify drivers and barriers to participation and how energy fits into everyday life on the human side of the meter. She is passionate about elevating customer voices through research and helping clients create solutions that align with and speak to customers’ values. Liz currently leads the qualitative research practice at ILLUME, training our team and guiding their work in ethnographic interviews, focus groups, concept testing groups, usability testing, message testing, and virtual interviews and focus groups. Liz supports the efforts of multiple stakeholders—manufacturers, utilities, implementers, and nonprofit organizations—as they design products, programs, and services in renewable energy, rate design, and energy efficiency. She has also supported program administrators through process evaluations to understand the experience of the program for those participating as well as implementing energy offerings. www.aesp.org | second quarter 2022 5

E ective Workforce Training Programs Critical To Meeting the Demands of a New Energy Economy Job losses, retirements, lack of diversity add to the challenge By Ellen Steiner The United States is at a critical juncture for workforce, climate, and equity goals. New technologies such as In our research work across the country, we are education, and training to play a pivotal role in electric vehicles and heat pumps struggle to become seeing a rise in the use of partnerships as a key decarbonizing the energy sector while simultaneously mainstream without a larger ecosystem of trained crosscutting strategy to address issues of equity driving COVID-19 economic recovery and ensuring professionals who can sell, install, and maintain these and inclusion, especially in the WE&T space. Many a diverse workforce. Building decarbonization and increasingly complex technologies. workforce, education and training programs are transportation electrification requires that the incumbent partnering with CBOs to develop programming workforce learn new technologies and continue to Utilities, state agencies, program administrators, that empowers people who experience systematic advance their knowledge, skills, and ability to keep and training entities are rapidly developing training barriers to access family-sustaining energy career pace with technological innovation. Those entering the and curriculum to support both the existing and opportunities. These programs typically provide workforce must be trained to take on the complex new entering workforce on decarbonization technologies, holistic services including career awareness, jobs associated with the new clean energy economy. including essential training on heat pump technologies technical training, employment support, and job This necessitates the retraining of existing educators to support building decarbonization and education placement. CBOs are being asked to partner on and a retooling of existing curriculum. Without on the maintenance of electric vehicles to support WE&T programming by conducting marketing critical, effective, and innovate workforce education transportation electrification. In parallel, these and outreach to underrepresented individuals, and training programs and the appropriate policy market participants are also increasing their focus identifying potential participants in WE&T programs, supports, our ability to quickly meet climate goals will on designing and implementing workforce and job and providing wrap-around support services such be thwarted. placement programs. Energy efficiency staff are as transportation subsidies, resume writing training, grasping the opportunity to bring individuals from and childcare services. Prior to the pandemic, the energy sector was one underrepresented groups into the energy efficiency of the fastest-growing sectors in the United States, workforce—looking beyond entry-level jobs and While there is no doubt that partnerships drive although a lack of gender and racial diversity remained identifying long-term career growth opportunities. outcomes greater than the sum of what individual a key challenge. The energy sector was not immune Investor-owned utilities in California, the California entities can achieve alone, we have observed from the pandemic-induced economic recession, and Public Utilities Commission, Ameren Illinois, NYERDA, too much focus on intended outcomes of these job losses were steep. According to the US Energy and the program administrators in Massachusetts, are partnerships. Little attention has been given to Employment Report (USEER),1 employment in the among those piloting programs designed to recruit, the attributes of what makes these partnerships energy efficiency segment in 2021 experienced the support, train, and place disadvantaged workers in successful. This is a missed opportunity to build most significant job losses, declining 272,000 workers, clean energy career paths. capacity across all stakeholders and to truly an 11.4 percent drop. Traditional HVAC firms shed understand what makes a partnership effective the highest number of jobs in the energy efficiency Through our evaluations of numerous workforce, and nimble in our ever-changing world. Effective segment, losing 66,700 workers and the ENERGY education, and training (WE&T) programs throughout partnerships require intentionality. Through our work STAR® HVAC segment lost 34,300 jobs.2 While the country, Opinion Dynamics has identified four key employment in the motor vehicles segment overall best practices to designing, deploying, and evaluating declined by 231,000 jobs in 2021, there were job these essential programs. increases in both electric vehicles (+6,100 jobs) and hybrid electric vehicles (+6,300 jobs). Not all workers 1. Develop partnerships with Community have experienced the impacts of the pandemic in the Based Organizations (CBOs). same way. Black, Hispanic, and female workers, who were already underrepresented in energy sector jobs, Developing effective partnerships is a key strategy have disproportionately been impacted by higher to empowering people who experience systemic levels of unemployment due to COVID-19. barriers to employment. Including diverse voices in WE&T needs assessments and program Job losses during the pandemic exacerbated an design activities ensures the implementation already shrinking workforce. Before the pandemic, team understands community needs, employer retirees in the skilled trades were outpacing new needs, and employee needs. CBOs are typically employees by a rate of five to one, leaving more nonprofit groups such as local and regional open positions than workers to fill them. The current trade organizations, community-based training economic downturn has not erased the need to organizations, cultural centers, faith-based mitigate climate change, and proactive interventions organizations, and employment organizations are vital to supporting current and future energy, who are working at the local and regional levels. 1 https://www.energy.gov/us-energy-employment-jobs-report-useer 2 The ENERGY STAR® name and mark are registered trademarks owned by the US EPA. 6 Association of Energy Services Professionals

in this area, we have identified five fundamental 4. Defining the Knowledge, Skills, and new jobs created. Workers in high carbon industries attributes of successful partnerships. We believe Abilities needed for successful energy will become more at risk of underemployment, that these attributes should guide the development, program implementation. unemployment, and redundancy. We must support execution, and evaluation of this key strategy. the transition of workers in these sectors and prepare Reviewing program theory and logic models them for these new opportunities. At the same time, we 2. Assess local and regional needs. (PTLMs) across energy programs of all types finds have a fantastic opportunity to foster equitable access that an implicit assumption of most programs is that to economic opportunities and create pathways for Successful workforce development programs are contractors and technicians—with experience— greater inclusion of underrepresented workers in the tailored to the local needs of the area and address have the right knowledge, skills, and abilities (KSAs) energy sector, helping address the critical skilled labor market needs for the local region. To learn what to install measures in a way that will realize and shortage. Considering these four best practices when the region needs, working with CBOs, is one great ideally maximize energy savings, greenhouse developing, implementing, and evaluating WE&T strategy. Another important strategy is the systemic gas reductions, and non-energy benefits. Energy programs will help ensure a fair, just, and impactful review of economic, demographic, employer, and programs and WE&T efforts utilize training transition to the clean energy economy. labor data. Studies that disaggregate energy- to support this assumption. However, the key related labor market information, recognizing challenge is defining the right KSAs to achieve About the author the drastically different economic conditions due these programmatic goals. In programs where to COVID-19; and assessing patterns of various these training needs are incorporated into the Dr. Ellen Steiner demographics with an equity lens are needed PTLM, program staff often consult relevant industries to capture a more nuanced picture of where the for guidance. For example, many HVAC/heat Dr. Ellen Steiner is a Vice energy workforce is and where they need to move pump programs across the country rely on industry President at Opinion Dynamics to support climate and equity goals. Profiling the standards to define quality installation and quality with a specialty in workforce, current workforce to understand the types of energy maintenance, often using ANSI/ASHRAE/ACCA education, and training, jobs lost from COVID-19, the regions most impacted Standard 180, ACCA Standard 5 and ACCA building decarbonization, heat by job losses, and the skills and credentials required Standard 9. While these standards, and others pumps, market research, mixed for existing and newly minted jobs resulting from like them, provide an important framework for methods research design, and the transition to a clean energy economy will program design and implementation, these types of evaluation. Dr. Steiner has led also be key. It is helpful to develop an inventory standards traditionally define what tasks to perform seminal decarbonization studies in both California and New York of energy training programs from universities, and sometimes what order to perform these tasks in. and is currently directing the evaluation of two of the largest community colleges, vocational/technical high But they do not typically define how to perform the decarbonization pilots in the nation, the California BUILD and schools, manufacturers, labor unions, job training tasks nor what tools to use to perform the task. This TECH programs. She has been leading evaluations of education organizations, trade associations, government lack of clarity of what knowledge, skills, and abilities and training programs for over two decades and had studied offices, cities, employers, training providers, and are needed to perform standards-based work has decarbonization technologies since 2010. She served as a professor community-based organizations. This inventory led to challenges determining the effectiveness of in the Department of Education at the University of Denver teaching can be used to identify gaps in the training network investments in training and education. graduate level research and statistic courses, as well as educational and can help program staff identify opportunities to assessment courses focusing on the K-12 population for eight years. expand reach, co-develop curriculum products and Since jobs are best understood as a series of tasks Dr. Steiner parlayed this experience into work at a large high-tech resources, establish internships, develop mentorship and responsibilities that an employee conducts, it company where she designed the company’s corporate-wide programs, and promote career awareness and is essential for utilities, program administrators, and competency management system; conducting pre-inventory data readiness. implementers to work with industry representatives to reviews, job-task analyses, and verification processes to define conduct job task analyses. This is especially important knowledge, skills, and abilities for a wide range of job families. She 3. Identify the program theory and align as America’s decarbonization efforts will create many also created supporting learning paths to develop the organization’s measurement plans to assess outcomes new jobs across heat pumps, electric vehicles, solar, current and future skill base. Dr. Steiner has evaluated numerous and not just outputs. wind and battery storage technologies. While there training programs--not just in energy. She holds a Certificate in has been significant research on job task analysis Measuring and Evaluation of Training Programs from the American It is crucial to establish appropriate theories of methods over the past 75 years, Opinion Dynamics has Society for Training and Development, now the Association for Talent change for workforce, education, and training found that the DACUM (Developing a Curriculum) Job Development. programs and how they link to overall energy Tasks Analysis method is an effective, comparatively and workforce goals. Unfortunately, many energy inexpensive, relatively fast, and time-tested approach. training programs have fallen into what is often These analyses create a foundation for developing referred to in the talent development industry as WE&T interventions, facilitating credentialing and the butts in seats culture. While Woody Allen certification, and developing workforce standards. said, “80% of life is just showing up,” sitting in a classroom does not mean learning has occurred. As we recover from the economic downturn and It is easy to track program outputs, such as the move towards a zero-carbon future, the energy number of people who attend a training or the sector is positioned to accelerate the movement number of trainings offered. But these metrics are towards a green economy, ensuring that communities woefully inadequate in measuring key training disproportionately impacted by pollution and climate outcomes such as if knowledge was gained, if change are not left behind. We can address climate skills are applied on the job, if training programs change, position disadvantaged workers in green are reaching underrepresented populations, and if careers, and provide a sustainable recovery from the training programs are preparing the workforce for economic impacts of COVID-19. This is an exciting transitioning to the clean energy economy. opportunity, but we must ensure we develop high- quality careers and not just jobs. The transition to a zero-carbon society will see some jobs disappear and www.aesp.org | second quarter 2022 7

Weaving energy equity into utility programs and utility culture By Ben Nathan and Miriam Stein Utilities are experiencing change and growth at the produce strategies and tactics that address underlying issues and achieve sustainable crossroads of two great movements. They’re seeking to results. We discuss this concept in our blog post The equity iceberg: What you need transform the energy system into one that’s cleaner as well to know about serving the underserved. as more efficient, resilient, and affordable. Simultaneously, social justice movements have been sweeping across Addressing discrimination by understanding the globe. Calls for justice have encouraged utilities to communities’ below-the-waterline needs explore their internal hiring, promoting, and procurement practices and their role in addressing energy inequities and Below-the-waterline needs are those affected by systematic discrimination—historic environmental injustices. policies, practices, and structures that limit access and opportunity. This discrimination affects access to employment, housing, healthcare, education, technology, and To ensure everyone has access to clean, affordable, reliable energy, utilities need capital. And it’s important to understand that these issues are connected: we can’t fix to first address historical inequalities like the effects of redlining policies on energy the root cause of the problem by addressing the symptoms. burdens. Some utilities are applying an equity lens to their demand-side management, distributed energy resource, EV, billing, and payment programs. They’re incorporating Unraveling historic inequity takes targeted investment and an integrated approach. equity into marketing and communications, supplier procurement, and trade ally Utilities must focus on meeting the needs in Maslow’s hierarchy of needs, starting with engagement. They’re learning about customers’ unique needs so they can create or the bottom layer and moving upward. modify programs and services to meet those needs. And many utilities are working on internal diversity, equity, and inclusion (DEI) initiatives. Above-the-waterline results that utility programs and philanthropic giving can Utilities prioritizing equity must act boldly and creatively to drive real, transformative achieve changes in our energy system. And they can use the strategies we discuss below as they work alongside underserved communities to solve their energy challenges. After their under-the-waterline needs are met, members of disadvantaged communities can thrive and achieve financial independence. Programs that address The equity iceberg: What is energy equity and above-the-waterline needs lead to: how can utilities make a difference? • Home and property ownership DEI trainers often use the metaphor of an iceberg to explain how conscious and subconscious thoughts, beliefs, and experiences influence behavior. For organizations • Responsibility, leadership, and a higher salary at work and individuals on the quest to increase equity, understanding the equity iceberg will • Capital to open a business, access to networks, and exposure to grow that business • Owning and controlling capital investment in other companies Although systemic discrimination plays a role in preventing above-the-waterline results, we more often attribute the lack of diversity in this area to more-subtle and nuanced reasons like unconscious bias and lack of intercultural competency. 8 Association of Energy Services Professionals

Below-the-waterline needs include food and energy, shelter, healthcare, a stable a long look at how more equitable energy policy and clean energy solutions benefit home life, personal safety, a clean environment, education, and employment. everyone, not just a few. And how they don’t, how they might even create harm.” Above-the-waterline needs include access to capital, saving, networking, To make energy equitable for all, utilities need to build relationships with the budgeting, rebounding from setbacks, and business success. communities and individuals they serve. Utilities must understand customers’ needs and how the energy system affects them—whether energy price burdens or health Achieving results above the waterline involves the education, exposure, and effort issues because of living near energy infrastructure. of diverse individuals. It also requires changing the hearts and minds of those in power to move beyond historic barriers in judgment, risk tolerance, and cultural differences. McDaniel shared her framework for how to achieve change. Each of the We need to first work within ourselves and our companies before we can successfully framework’s steps involves personal reflection and adjustments in how we relate to spread the costs and benefits of our energy system more equitably throughout our others. The five steps are: communities. • Hope How to initiate personal and organizational change • Trust When it comes to DEI, there’s no one-size-fits-all option. DEI requires a lot of • Curiosity thought and intentionality. We sat down with Drisana McDaniel, cofounder of the Transformative Teaching Collective Cooperative, to discuss the topic. We talked • Accountability about the importance of DEI to utilities, both in the workplace and during interactions with communities. • Solidarity We asked McDaniel where the energy industry fits into racial equity. She reminded McDaniels’s definition of solidarity as requiring a commitment to honoring us that while equity is everyone’s responsibility, the energy industry is in a unique differences and discovering common ground inspired us. She shared, “It’s in those position because of its impact on, and potential to support, vulnerable communities. spaces where we are thinking about honoring difference, valuing difference even, while also discovering common ground that people begin to think, ‘Oh, well, here’s “One of the things I think about is, who are the most vulnerable communities? how I can be helpful’ or ‘I can leverage my resources in this way.’ This brings relief And how are they made vulnerable by social and demographic factors?” explained and hope.” McDaniel. “And then we can think about what the energy industry’s place is in addressing that because those factors that tend to make those communities most We asked McDaniel how this personal change and growth influences organizations vulnerable are intersectional and cumulative. We’re all called to determine how we such as utilities and how that work can affect the communities utilities serve. She can be a part of addressing this for the industry. It means that experts need to take shared a powerful image when she replied, “It’s kind of like skipping stones across a lake, with ripples that spread outward. People begin to make new decisions about the kinds of conversations they’re having within the sector and across organizations.” The E Source energy-equity framework In addition to the personal and organizational work we spoke with McDaniel about, we recognized a need for a clear framework to guide utilities in creating customer-facing programs with an equity lens. We developed the E Source energy- equity framework based on our industry-wide perspective on utilities’ energy-equity strategies. It maps out the iterative process required to create and implement equitable programs. The framework explains the steps for planning, executing, and improving programs that serve all customers. The four stages guide and inform one another. To learn more about each element and see examples and case studies, read the E Source white paper The energy-equity framework that benefits customers, utilities, and underserved communities. Define and measure equity DEFINE EQUITY. Utilities need to define what energy equity means for their business and customers before they can create goals and metrics. Or they can find definitions, goals, and metrics in existing frameworks and legislation. IDENTIFY EQUITY METRICS. Energy-equity metrics are most effective when the needs of utility customers inform them. Local stakeholders can help utilities understand the most important data to collect for different customer groups. SET ENERGYEQUITY GOALS. When setting goals, utilities can use market research and community feedback to learn about customers’ energy perceptions and needs. APPLY DEI INTERNALLY. To develop equitable programs, utilities must examine equity within their organizations. Internal DEI efforts can help ensure that utility hiring, culture, and decision-making reflect the customers and communities they serve. Engage stakeholders In each element of our energy-equity framework, utilities should involve internal and external stakeholders. Utilities rely on insights from local stakeholders to understand, engage, and serve communities that haven’t historically benefited from utility programs. Community-based organizations (CBOs) are well positioned to help utilities understand their community’s needs. www.aesp.org | second quarter 2022 9

Although utilities may be in different stages, this framework can help them better understand energy-equity opportunities, effective program implementation, and continuous improvement. Utilities can partner with these groups to design programs, conduct outreach, and •Use data to evaluate energy-equity programs. Several utilities and implement projects. To engage CBOs, trade allies, and community members, utilities regions use data-based mapping tools to identify target regions and evaluate the can: success of energy-equity programs. They can also help utilities adjust metrics as customers change over time. • Partner with CBOs to distribute funding and market programs; engage members of the community as mentors •Review and iterate on energy-equity programs. It’s important to regularly revisit energy-equity program design to ensure the program continues to provide • Offer language-specific resources and use inclusive marketing techniques benefits. To use data to improve energy-equity programs: • Work with local and diverse trade allies • Use customer participation data to adjust program design and outreach • Provide workforce development opportunities • Assign a manager to track and report on energy-equity metrics • Talk to historically underrepresented groups about energy to inform plans • Review participants’ demographic and geographic data regularly Design and implement energy-equity •Let’s work together to create an equitable energy future. It’s critical to programs create spaces for organizations to come together and discuss their work and the things they’ve learned. We’re grateful that the energy industry is willing to work Utilities can incorporate equity into any program type and the internal operations together to make progress, and we’re excited to share our perspectives alongside associated with programs. For equitable program design and implementation: those of other thought leaders. If you’d like to learn more about our equity work, please visit our website for more information. We look forward to collaboration, •Identify and target disadvantaged communities. Offer programs and deep reflection, and support throughout our collective journey toward energy enhanced incentives to targeted communities, using community-informed equity equity. metrics. About the authors •Encourage local job growth through programs. Bring education, workforce development, and new clean energy technologies and practices to Ben Nathan underserved communities. Ben Nathan is a Lead Analyst at E Source, where he provides •Make it easy for customers to enroll in bill assistance and energy research and advisement to power utilities on energy equity and efficiency programs. Consider alternative eligibility requirements, community- demand-side management strategies. Before he joined E Source, Ben based targeting, and automatic enrollment to expand access to more worked at the US Department of Energy and the National Renewable underserved customers. Energy Laboratory where he helped states, local governments, and public utilities with their energy planning and management. •Design programs based on feedback from stakeholders. Prioritize Miriam Stein solutions based on feedback from local stakeholders, including CBOs. Miriam Stein is an Analyst at E Source, writing reports and hosting Evaluate and iterate on energy-equity events on communications and customer experience topics as part of programs E Source's Customer Engagement Solutions team. She specializes in helping utilities make energy and efficiency affordable and accessible Utilities need the right metrics to monitor energy-equity outcomes, and they need to to all customers. She has experience advising utilities on creating include those metrics in program evaluations and annual reports. Findings from these inclusive messaging, doing effective community outreach, and evaluations will help them improve or redesign programs as needed. partnering with community-based organizations. Miriam has a BA in physics with an art history minor from Swarthmore. •Measure the cost-effectiveness of energy-equity initiatives. Some energy-equity metrics include benefits that aren’t related to energy. Evaluating non-energy benefits (NEBs) is still a relatively new process in the industry and can introduce regulatory challenges. Most utilities use the Total Resource Cost test for benefit-cost analysis, but it excludes societal benefits like economic development or improved air quality. To better account for energy equity, utilities should adopt a new cost-benefit test or adjust existing tests to include NEBs. 10 Association of Energy Services Professionals

Healthy, affordable housing for all: It’s the right thing to do By Rachel Dortin and Shannon Stendel Environmental Justice describes the right to a safe, healthy, The Jemez Principles for Democratic Organizing have been used since the 1996 productive, and sustainable environment, where “environment” is Southwest Network for Environmental and Economic Justice meeting, in order to considered in its totality to include the ecological, physical, social, ensure that all people have a seat at the table.3 Much like the EJ principles, the Jemez political, aesthetic, and economic environment. Environmental Principles empower us to: justice addresses the disproportionate environmental risks borne by low-income communities and communities of color resulting • Listen actively and involve all people in decision making; from poor housing stock, poor nutrition, lack of access to healthcare, unemployment, underemployment, and employment • Emphasize bottom-up organizing and relationship building; in the most hazardous jobs. • Commit to self-transformation as we learn from one another, and Community needs should drive housing solutions. • Invite all people to self-represent. We have a shortage of 7 million affordable rental homes for people with household incomes at or below the poverty guideline.2 There is no “one size fits all” Guided by these principles, we offer a simple framework to design community-led approach to this problem. You can’t build a successful program without understanding solutions: “show up, listen actively, and practice care.” a community’s needs, and you can’t describe the community until you know them. Instead, the Principles of Environmental Justice (EJ) and the Jemez Principles of Show up with the Environmental Justice Principles. Democratic Organizing guide us to build solutions with impacted communities. PRINCIPLE OF EJ 7 The Principles of EJ have been widely used for grassroots organizing since their adoption at the 1992 First National People of Color Environmental Leadership Environmental Justice demands the right to participate as equal partners at every Summit.1 These principles: level of decision-making, including needs assessment, planning, implementation, enforcement, and evaluation.1 • Guide us to focus on unity and interdependence of people and the planet; JEMEZ PRINCIPLE 5 • Demand mutual respect and justice for all people, and Build Just Relationships Among Ourselves: We need to treat each other • Affirm the right for all people to access resources, live in safe environments, and with justice and respect, both on an individual and an organizational level, in engage in political, economic, cultural, and environmental self-determination. this country and across borders. Defining and developing “just relationships” will be a process that won’t happen overnight. It must include clarity about decision- making, sharing strategies, and resource distribution. There are clearly many skills necessary to succeed, and we need to determine the ways for those with different skills to coordinate and be accountable to one another.3 Several years ago, we were introduced to Growing Up Healthy in Minnesota, a local community group working to improve housing in manufactured home parks in its community. Residents had some of the highest winter water bills in the county because they constantly ran water to prevent pipes from freezing.4 Slipstream building science expert Adrian Scott showed up and trained residents on how to weatherize their homes. www.aesp.org | second quarter 2022 11

Slipstream building science expert Adrian Scott trains residents on winterizing their Slipstream building science expert Adrian Scott gets to know the residents of manufactured homes mobile home parks through Growing Up Healthy We recently reconnected with Growing Up Healthy through the Justice40 The Community Development Corporation (CDC) of Pembroke and Hopkins Park Accelerator initiative. They shared their vision, along with its challenges, and in Illinois is leading an exciting weatherization and electrification demonstration asked “How can you help us?” Growing Up Healthy staff are struggling to hire a project. One of the authors, Shannon Stendel, quickly learned the importance of manufactured home rehab coordinator and find trustworthy contractors to work on listening to understand the project’s goals and how Slipstream could best support manufactured homes. They are also in talks with a variety of stakeholders (utilities, it. Shannon also quickly learned the importance of following the community’s lead, faith communities, city government, county government, nonprofits, etc.) about how to lending expertise when needed, and being flexible. Early in the project, the CDC put improve housing for families they support. Growing Up Healthy trusts us to show up project partners on notice. The CDC viewed some project management suggestions again because we showed up to help them in 2019. from partners as trying to “micromanage” the project. The CDC knew how to effectively navigate the scope, resources, and timeline. We needed to listen, take Utilities and governments often find communities like this one “hard to reach.” Let’s a backseat, and recognize that we lack the expertise of the community, which was challenge that label. Existing solutions are based on what has worked in wealthy, needed in order to implement the project. white communities, not the frontline communities who need them most. Community members and groups bring creative solutions that make programs more effective. Our home assessments identified a resident with an unvented propane heater who had taken batteries out of the carbon monoxide detectors because they beeped Listen actively with the Jemez Principles. constantly. Through one-on-one conversations we explained how dangerous the situation was, and community members supported the resident based on what we PRINCIPLES OF EJ 5 explained. Environmental Justice affirms the fundamental right to political, economic, cultural Practice care with asset framing. and environmental self-determination of all peoples.1 Asset framing is the simple act of defining communities by their strengths and JEMEZ PRINCIPLE 3 aspirations, not their weaknesses or challenges. “One of the benefits of asset-framing is that when you state someone’s aspirations, your brain instantly associates them Let People Speak for Themselves: We must be sure that relevant voices of with worthiness. It becomes much easier to see that the problem is not the person but people directly affected are heard. Ways must be provided for spokespersons situations and systems that block their worthy aspiration” - Trabian Shorters, CEO of to represent and be responsible to the affected constituencies. It is important BMe Community.5 for organizations to clarify their roles, and who they represent, and to assure accountability within our structures.3 PRINCIPLE OF EJ 16 Begin a community-led project by showing up and listening. People have life Environmental Justice calls for the education of present and future generations experiences, challenges, and joys that make them experts in their community. which emphasizes social and environmental issues, based on our experience and Based on what we learn from active listening, we can work with the community to an appreciation of our diverse cultural perspectives.1 determine if we have the tools, skills, and organizational will to adapt and support the community’s priority initiatives. We must remember to not bring our own agenda to these discussions; patience and good listening skills go a long way. 12 Association of Energy Services Professionals

JEMEZ PRINCIPLE 4 Housing is a human right. Housing is the heart of environmental justice. Work Together in Solidarity and Mutuality: Groups working on similar issues with compatible visions should consciously act in solidarity, mutuality and Across the country, affordable housing is increasingly inaccessible for people support each other’s work. In the long run, a more significant step is to incorporate with low incomes, communities of color, and Indigenous communities.11 Systemic the goals and values of other groups with your own work, in order to build strong redlining, predatory lending practices, and racist zoning laws have denied people relationships. For instance, in the long run, it is more important that labor unions the opportunity to develop generational wealth. The result? People forced to live in and community economic development projects include the issue of environmental highly polluted areas with low air quality, near toxic waste dumps, in housing that sustainability in their own strategies, rather than just lending support to the doesn’t keep them safe. environmental organizations. So communications, strategies and resource sharing is critical, to help us see our connections and build on these.3 We must prioritize safe, healthy housing for all to advance our climate and equity goals. The energy industry holds powerful tools: New affordable housing units only help a small sector of a community. Many people already live in unsafe, unhealthy homes. They can’t sell homes located in EJ • Technology to improve home health and safety communities — or they spend too much on energy to afford higher rent elsewhere. Only about 30% of homes are eligible for weatherization programs, meaning only • Evidence of what works in various climate zones 0.2% of households with low incomes are weatherized each year.6 Over 35% of homes require some level of home repair, and 6.6 million households with low • Financing programs to help lower energy burdens. incomes need home repairs.7 But our solutions are disproportionately available to white, wealthy households, Energy burdens for people with low incomes are often three times as much as the even though the affordable housing crisis disproportionately impacts Black, Brown, national median. This prevents people from financing home repairs and may make Indigenous, and Immigrant communities.12 It is our responsibility to change that. We it difficult to participate in weatherization or utility programs that help lower energy need to show up, listen actively, and practice care. burdens and improve home environments. For example, a low-income home may be deferred from receiving weatherization services due to excessive mold or moisture, a 1. https://www.ejnet.org/ej/principles.html leaky roof, asbestos, or pests. Some programs address these “pre-weatherization” improvements and enable weatherization, but that is not universal. 2. https://nlihc.org/sites/default/files/AG-2021/01-06_Housing-Human-Right.pdf Programs that provide critical home repairs are one of the biggest investments 3. https://www.ejnet.org/ej/jemez.pdf utilities and governments can make to care more about their communities. These programs change people’s lives. These programs show that we, as a society, care 4. https://slipstreaminc.org/blog/slipstream-partners-growing-healthy-help-manufactured-homes-residents-reduce-energy- for one another. costs The 2021 Energy Conservation and Optimization (ECO) Act in Minnesota 5. https://www.comnetwork.org/resources/asset-framing-the-other-side-of-the-story/ increased utility minimum spend requirements on programs for customers with low incomes and allowed new Conservation Improvement Program (CIP) spending on 6. https://www.aceee.org/blog-post/2020/07/weatherization-cuts-bills-and-creates-jobs-serves-only-tiny-share-low-income pre-weatherization measures.9 7. https://shelterforce.org/2020/02/12/why-organizations-should-invest-in-home-repairs-to-improve-health/ Many communities use Community Development Block Grants to improve housing. For example, Slipstream recently partnered with Ramsey County, Minnesota on a 8. https://www.aceee.org/sites/default/files/pdfs/ACEEE-01%20Energy%20Burden%20-%20National.pdf critical home repair pilot program to deliver health and safety repairs to homeowners with low incomes. 9. HF 164 2nd Engrossment - 92nd Legislature (2021 - 2022) (mn.gov) Using asset framing10 to define a community differently is an act of care that 10. https://www.chcf.org/wp-content/uploads/2021/04/UnderstandingAssetFramingGuidelinesAuthors.pdf will drive participation. People need to see themselves in the program design— represented the way they represent themselves—to participate. 11. https://nlihc.org/gap 12. https://www.eesi.org/articles/view/building-green-how-affordable-housing-can-tackle-justice-and-sustainability About the authors Rachel Dortin Rachel Dortin has been a Digital Content Strategist at Slipstream since August 2020 and a member of the Midwest Building Decarbonization Coalition on the Equity team. Rachel has a PhD in Rhetoric and Composition from Wayne State University where she practiced ecofeminist and participatory research to establish activist approaches to advance equity in university collaborations with nonprofit organizations. Her work is informed by environmental justice and democratic organizing. Shannon Stendel Shannon Stendel implements and explores innovative approaches to deliver equitable clean energy solutions to residential and low-income customers. Shannon’s current projects and areas of interest include serving low-income families in environmental justice communities, exploring the intersection of health and energy, improving manufactured homes, delivering home retrofits, and delivering behavior- focused services. Over the past 15 years, she has led projects and pilots in the healthcare, insurance, and energy efficiency industries. www.aesp.org | second quarter 2022 13

A Utility’s All-In Approach to Clean Energy Workforce Development Yields Results— and Jo s By Selim Karabulut, Senior Vice President, ICF Clean energy workforce development has emerged In this paper, we explore why workforce Why should utilities create energy efficiency as a promising path for community engagement, development programs are important for utility energy workforce development programs that, while resiliency, and impact as utilities deliver their energy efficiency program leaders to consider—and how the admirable, fall outside the remit of their traditional efficiency (EE) portfolio of programs. By creating conditions are optimal right now to put them in place. role? One reason is that investors, stakeholders, and opportunities for jobs that appeal to a diverse policymakers increasingly encourage utilities to fulfill applicant base in a specific location within a service Then, we will zoom in on a large mid-Atlantic a broader mission that brings more benefits to society. territory—and providing on-the-job training to help utility and tell the story of its ambitious workforce The need to provide safe, reliable, and affordable these workers build rewarding careers in the energy development program: how it was designed, what energy is still a primary driver, but today’s utility efficiency sector—utilities can make progress toward makes it stand out, and the results it is delivering. While leaders understand that the role of the public service their energy savings goals and deliver benefits to this comprehensive approach will not work for every companies they lead extends in several directions. disadvantaged communities at the same time. utility today, it is an interesting case study that energy They recognize that the opportunity and obligation efficiency program leaders may be able to use for to be a major contributor to community health is not What are some practical, no-regrets steps that inspiration as you craft your own programs. simply altruistic; it’s a prerequisite to earn stakeholder energy efficiency and demand-side management support for investments they need to make. Community leaders should follow as they work to upgrade existing From tr dition l EE progr ms to building is an essential part of creating value for the programs and create new ones with a more ambitious utility. community-building goal in mind? Because each utility community- uilding EE progr ms operates within a specific regulatory and business A more tangible and immediate benefit of workforce context, some may choose to develop programs that What is the objective of traditional energy efficiency development programs is that they build a supportive are smaller and more focused in nature, while others programs? For more than 40 years, this question has infrastructure of skilled contractors and workers who may decide to go big and bold. had a simple answer: to reduce customer energy can ensure that energy efficiency equipment is properly consumption through regulator-approved programs installed and maintained—and, in doing so, help In our experience designing and delivering with incentives and rebates that are, for the most part, energy efficiency programs realize their full energy- workforce development programs for utility clients, paid for by a utility’s customer base. savings potential. By taking steps to cultivate a trained we have seen firsthand that there is not a single labor infrastructure, utilities can reassure customers that recommended approach that will work for all utilities While this primary energy savings objective has not the energy efficiency upgrades and retrofits they invest and communities. But there is a through line that changed, many utilities are taking a closer look at the in will be properly executed. Also, when utilities and carries forward successful workforce development secondary, non-energy benefits, such as job creation their trade partners can easily tap into a pool of trained programs—regardless of scope, they involve creative and economic development, that traditional energy labor to implement their energy efficiency programs, collaborations between utilities and community efficiency and demand-side programs can deliver to the process is more efficient, and all parties benefit. stakeholders. their service territories. 14 Association of Energy Services Professionals

Utilities may invest in workforce development to program that delivers benefits both to your utility and TO EVOLVE YOUR ENERGY create new talent pipelines for their companies and their the communities you serve? In the following section, we EFFICIENCY PROGRAMS, partners’ businesses; to advance diversity, equity, and will shine a light on one utility’s approach and share START BY ASKING THESE 5 inclusion initiatives; and to enhance their reputations tips and best practices for EE leaders to consider. QUESTIONS: with customers and other important stakeholders. The Pu lic Service Electric & G s • In what ways have Some would argue that the focus of energy workforce deficiencies in efficiency programs should remain on as much direct- Comp ny (PSE&G) Cle n Energy the communities we serve install energy saving technology as possible to help hindered the success of our programs be more successful in achieving a utility’s or Future-Energy Efficiency Progr m EE programs? state’s energy reduction and decarbonization goals. Others would point out that it is no small endeavor PSE&G gained approval for the program from the • How can we improve the to expand the role of traditional energy efficiency New Jersey Board of Public Utilities (BPU) in September outcomes of our programs programs to support broader goals and initiatives, 2020. It was approved to commit $1 billion to energy through targeted workforce since that may require a significant reassessment of efficiency investments over three years with the explicit development? utility mandates, missions, and roles. goal of delivering environmental benefits, reducing customer bills, creating jobs, and boosting the New • How can our programs These points are certainly important to consider. But Jersey economy—all in line with the clean energy vision benefit small and with calls and funding for clean energy and climate outlined by New Jersey Gov. Phil Murphy. local businesses in the justice growing by the day, utility leaders across communities we serve? the country are seeking creative ways to make their The program was designed to create up to 2,000 programs work harder to deliver both primary and jobs and stimulate economic growth, avoid 8 million • How can our programs secondary benefits to customers. metric tons of carbon emissions through 2050, and lift the disadvantaged advance PSE&G’s strategy to become a leading clean communities we serve For a deeper look at the full landscape of seismic energy provider. Diving deeper, the program was by creating economic policy and program shifts that will need to occur to designed to target several community-building goals opportunities? usher in large-scale change, read our white paper, important to PSE&G and the state. Energy efficiency evolution: New opportunities for • How can we advance our utility programs. • 70% of program funding was earmarked to help commitments to diversity, business customers lower energy consumption equity, and inclusion Workforce development progr m and costs to enhance New Jersey’s economic through our programs? competitiveness. components in this case has been PSE&G’s “all-in approach” to • The program bolstered PSE&G’s energy efficiency developing a comprehensive framework to support While they vary widely based on a utility’s goals job program, which partners with community workforce development. and community needs, workforce development efforts organizations and the New Jersey Department of typically include: Labor to recruit participants from the state’s urban Some utility programs dip their toe in this space by centers into the program with the goal of preparing simply tracking and measuring their current impact. • Job readiness screening 2,000 state residents to work for contractors that Others take the next step by working with community implement PSE&G’s energy efficiency efforts. partners and advocates to recruit trade allies and • Individual plan development access new labor pools, particularly in disadvantaged • The program was designed to create “universal communities, to nudge workforce development goals • Community asset mapping access to energy efficiency,” with measures such forward. Neither approach is wrong, but PSE&G went as energy efficiency kits, free energy audits, and “all in” by using those approaches and paying for a • Labor market analysis 0% financing on efficiency upgrades tailored to job training program. the needs of low-income, multifamily, and small • Employer engagement business customers. PSE&G chose to recruit and facilitate the hiring of 2,000 workers while also assessing and providing • Capacity building Workforce development in focus: training opportunities. These workers will be hired by partner companies and contractors that lead its • Economic recovery and resilience Ex mining results, extr cting est energy efficiency implementation efforts. In doing so, the utility not only creates job opportunities within the • Work-based learning pr ctices disadvantaged communities it serves but also supports local companies such as HVAC service providers. Energy efficiency programs traditionally enlist the Since it was approved in fall 2020, PSE&G’s Clean services of a trusted network of program implementation Energy Future-Energy Efficiency Program has shown Tip: Hire dedic ted workforce partners and contractors. That means job creation. great promise. development director Utilities can use the lever of job creation to support targeted communities through job training programs The program has created more than 700 jobs To recruit, train, retain, and develop workers on focused on systemically underemployed community through various workforce development activities a significant scale requires dedication and focus. members and enlisting key suppliers and contractor and training pathways including the completion of Including leadership and support from a director-level networks in those job training initiatives, particularly as a pilot cohort of an on-the-job training program. In workforce development professional who oversees the future employers for newly trained workers. February, PSE&G launched a second training cohort process can help ensure its success. -- a six-month program with candidates referred by C se study of n m itious cle n community partners and steering committee members The utility developed innovative workforce – along with multiple trainings planned for the future development programs designed to bridge the gap energy workforce development (e.g., introductory training for core concepts of building between the underserved community and the skills science and EE, job readiness program, etc.). These progr m workforce development initiatives and efforts will help make further progress toward a goal of 2,000 newly Utility leaders know that energy savings and trained workers hired into jobs with the company’s cost effectiveness must still be at the heart of their partners and contractor network. programs. They know that redesigning or launching new programs that incorporate meaningful community- How has PSE&G made progress on the program’s building measures not only requires a massive internal workforce development priorities? The key to success effort, but it also entails hard work with regulators and advocacy groups to create a path for innovative ideas. How do you craft a workforce development www.aesp.org | second quarter 2022 15

Multi-faceted approach to workforce development Current Workforce Trends Strategic Upskill Community Current Workforce Partner Involvement Local New Hire Schools & Training and National Recruitment Certs Support 1 needed for community-based clean energy jobs. trade ally development. The program set a goal of sweeping the power industry offers exciting It worked closely with trade allies and community 42%-44% diverse supplier participation and targeted opportunities to improve EE and decarbonization partners to ensure effective program rollout and local companies and experienced PSE&G suppliers to program delivery and to support more customized and accurate reporting and updates. implement program efforts. market-based programs. The umbrella Clean Energy Jobs Program includes Combined, the job creation, clean energy, and ICF tapped its expertise and deep data-driven several workforce development programs serving trade ally and implementation partner components of insights to partner with PSE&G on the delivery of the diverse needs, including: the program created a structure that allows PSE&G Clean Energy Future-Energy Efficiency Program. We to pursue and measure progress on community- work with utilities and state-level offices to design • An introductory training program for entry-level building goals that the utility, state regulators, and the and implement innovative EE and DSM programs candidates to learn core concepts governor’s office are aligned on. that deliver core cost-effective energy savings and advance critical community-building goals. While • A job readiness program for entry-level candidates Tip: Don’t forget out “wr p round every utility has a specific regulatory and business to learn social and presentation skills that prepare context to consider, and not all are prepared to launch them for the business environment services” a comprehensive program on day one, there are entry points at every level suited to your specific needs and • An on-the-job training program for candidates A thoughtful and inclusive approach to workforce priorities. referred by community partners to provide energy development programs should consider the many efficiency job experience needed for hard-to-fill hurdles that applicants may need to clear to take About the author positions advantage of a job opportunity. To address issues like a lack of child care, transportation, or housing, PSE&G Selim Karabulut • An on-campus recruitment program to provide provides “wraparound services” in conjunction with a vocational/technical and community colleges with grant from the state Department of Labor & Workforce Selim is responsible for the a pathway to clean energy jobs Development. strategic direction of the Eastern Region of ICF’s Utility Program • A mentorship program that helps Minority, Women, Unlock the potenti l of EE Services business. He leads energy Veteran, Business Enterprises (MWVBE)-certified efficiency program and portfolio businesses gain access to the clean energy industry progr ms to support economic management including design, delivery, and oversight of over Tip: Develop r nge of workforce nd workforce development 100 residential, commercial and industrial (C&I), behavioral, and beneficial electrification programs development progr ms th t re t ilored An increasing number of investors, stakeholders, and for 35 clients. Selim leads multiple ICF regional offices serving policymakers are considering using energy efficiency several large portfolios and clients including: Baltimore Gas and to serve the diverse needs of your programs as a tool to bolster positive community Electric (BGE), Southern Maryland Electric Cooperative (SMECO), impact, but how to best do so is still an open question. Pepco Holdings, ConEdison, Duke Energy, Entergy Mississippi, community. Dominion, and Public Service Electric & Gas. Reducing energy use remains an important objective To maximize the impact of your workforce but delivering positive workforce impacts will require development efforts, design programs that reach, an evolution in program design and delivery. Key engage, and support candidates with diverse needs. policy changes that clarify energy efficiency program An on-campus recruitment program requires a objectives are needed, not to mention aligning the different approach than on-the-job training. Meet your regulatory model with those objectives. candidates where they are on their career journey. When utilities and regulators align on program PSE&G’s program delivered ongoing workforce goals and structure, the data and analytics revolution development trainings for trade allies, partnered with local trade schools and community colleges, and created staff positions to focus on workforce and 16 Association of Energy Services Professionals

Sending out customer rewards? Time to ditch paper checks By David White, VP, Utility Solutions at Blackhawk Network Across the energy industry, we’re seeing a big began using a digital wallet in that time. We expect these changes are going to be shift in consumer attitudes toward rewards and permanent shifts, as younger generations become more and more comfortable with payments. The old method of sending out rebates integrating digital worlds into their personal and financial lives. or refunds by check isn’t making anyone happy. Fewer and fewer people use checks regularly—if For energy companies, this shift to digital should change how you approach at all—and stale, uncashed checks are piling up sending rebates and rewards to customers. So many of the worst aspects of reward for organizations that still use them. For most distribution are solved immediately by moving into a digital format: the costs of printing people, checks represent an obstacle and an and mailing, the slow pace of delivery by mail, checks lost in the mail or destroyed by inconvenience instead of a reward. weather. A digital format is the greener option—no postage, paper, or plastic—that makes it cheaper for utility providers to dispatch rewards that arrive instantly. The modern method of distributing rewards is, like so many things these days, purely digital. Digital payments are taking over the space once where paper checks once When rewards are easier and cheaper for utilities to send, they’re more likely to dominated. Whether they’re used for residential rebates, demand-response incentives send them more often and to more customers. For customers, that’s a clear win. It or even appliance recycling rewards, digital payments are faster and easier to deploy could also add a dramatic new aspect of their relationship with their utility service than mailing a signed check. They’re also paperless and more eco-friendly, which provider. Being surprised and delighted by companies they do business with is a rare many utility providers and customers are coming to expect. feeling, and it’s the kind of marketing move that builds a lot of goodwill and loyalty. For recipients, they’re easy to redeem and a convenient way to fund shopping To distribute digital payments at scale across a large population, utility providers online. Plus, there’s no bank account required to redeem a digital payment, should look to the expertise of a payments company like Blackhawk Network. opening these rewards up to the many millions of Americans who are unbanked Blackhawk Network is a global expert in the payments space, ready to help with or underbanked. For these folks in particular—possibly your customers who would questions about distribution, currency and any regulations you need to be aware of. appreciate a reward the most—a mailed check comes with the cost of fees paid to a Digital payments are the rebate option that has proven to be convenient, secure and check cashing company. fully customizable. Unconvinced? The trend toward digital payment acceptance had been underway When you send funds to your customers as an incentive or a rebate, do it in a way for many years, but it accelerated dramatically as life moved online during the that reduces waste, cuts costs, and actually makes people happy. Do it digitally, and COVID-19 pandemic: according to our research, 43% of consumers are using leave the checkbook and stamps behind. digital gift cards and prepaid cards more frequently since March 2020, and 59% Ready to learn more about sending digital payments to your customers? Talk to Blackhawk Network and get started today. ARTICLE SPONSORED BY BLACKHAWK NETWORK www.aesp.org | second quarter 2022 17

Closing he Clean Technologies Skills Gap: Advancing Energy Efficiency Through Heat Pump Training for HVAC Contractors By Robert Foley Air-source heat pumps (ASHPs) are an increasingly important tool in energy fuel switching. Some states are advancing more efficient building energy codes. The efficiency programs, as they can be several times more efficient than conventional list of states that have adopted the 2018 International Energy Conservation Code systems for space heating and cooling such as furnaces, boilers, and central air (IECC) is growing longer and many states are now reviewing the new 2021 IECC. conditioners. Heat pumps aren't new; the technology has been around for decades, Further, the District of Columbia and multiple states adopted water- and energy- and they are a popular heating appliance in milder climates in the U.S. However, saving standards for various appliances. Innovative green solutions like ccASHPs will recent technological innovations, such as inverter-driven compressors, have have a vital role to play in efforts to slash carbon emissions and phase out inefficient dramatically improved their performance and efficiency. Modern ASHPs can serve equipment. as a highly efficient space heating solution even in very cold climates, performing well below 0°F depending on the equipment. Terms for this class of equipment run the The Nex Thing in Green: gamut of HVAC jargon, but I will refer to them here as cold-climate air-source heat Cold-Clima e Air-Source Hea Pumps pumps (ccASHPs). Cold climate air source heat pumps have a range of applications for residential Industry leaders, regulators, and policymakers are beginning to recognize the and commercial buildings, in both new construction and retrofits. They can be installed value of these systems, evidenced by new policies and programs to increase heat in all U.S. climate zones and provide year-round space conditioning, often without pump adoption. State programs to encourage replacement of conventional HVAC backup heating. Their high efficiencies enable them to drive deep energy savings; for systems with high-efficiency heat pumps (including ccASHPs) in residential and example, a field assessment conducted in Minnesota showed that ccASHPs achieved commercial buildings have been growing, primarily in the West Coast and Northeast. site energy reductions between 37% and 54%. Because they provide both heating The U.S. Department of Energy (DOE) recently launched the residential Cold Climate and cooling, ccASHPs can often remove the need for multiple systems for space Heat Pump Challenge, which will leverage partnerships with manufacturers and conditioning. They can also be connected to smart controls like smart thermostats, utilities, among others, to advance deployment of these technologies. giving both utilities and end-users greater control in managing energy demand. It's also worth noting that ccASHPs increase customer comfort by providing better control A Changing Landscape over temperature set points, improving air quality, and dehumidifying customers' homes. Across the U.S., state policymakers are intensifying clean energy development efforts and increasing energy efficiency investments. New laws have been passed that Lights are turning green, but there's a link in the chain that needs some attention: advance decarbonization and electrification, several of which (such as Minnesota's HVAC contractors. Energy Conservation and Optimization Act) promote clean heating by incentivizing 18 Association of Energy Services Professionals

Where Are he Con rac ors? Finding contractors willing or able to sell, design, install, and maintain ccASHPs has been a challenge for utilities and their energy efficiency program implementers. Energy leaders throughout the country have determined that there are too few training opportunities to help contractors embrace and advance this new technology, and hopefully overcome contractor aversion to ccASHPs. The need was recently addressed on a national level when the U.S. DOE's Building Technologies Office awarded approximately $83 million to support, among other things, the development of heat pump education and training programs for contractors. Advanced trainings can address both unfamiliarity and outright resistance EXAMINING THE BARRIERS This barrier can be mitigated by leveraging ccASHPs in holistic retrofits that incorporate other energy efficiency measures, e.g., LED lighting, air and duct sealing, No Your Grandparen s' Hea Pump better windows, etc., and perhaps PV solar installations. However, this approach will often require the HVAC contractor to become (or engage) a whole-building retrofit Contractors often confuse ccASHPs with previous generations of heat pumps, general contractor so that the building shell is addressed at the same time as the which underperformed in cold climates and discouraged customers. Often they HVAC. Further, HVAC contractors cannot ultimately be the sole driver for this solution; did not adequately heat homes, and even when they were heating the space, the it depends on other factors including building owners' financial capacity and the way they operated confused customers. Heat pumps blow cooler air than gas-fired, utilities' energy efficiency program design (i.e., available rebates, eligible measures forced-air systems or electric resistance heating—typically at 85°-95°F, in stark in the technical resource manual, etc.). A fuel switch can also require upgrades to contrast to the 130-140°F+ air common to the existing, conventional heating systems. the electrical infrastructure. If the contractor recognizes that need—which doesn't This difference created the impression that the heat pumps weren't working even when always happen—it can be challenging to advocate for those upgrades with customers they were functioning as intended. Over time, customers' negative experiences made because they are often very costly. While some utilities such as Sacramento Municipal contractors wary of promoting and installing these systems. Contractors are very risk- Utility District have begun incentivizing infrastructure upgrades, those utilities are the averse when it comes to their businesses and follow-up service needs impact their exception. profits. Many contractors started adding risk premiums to installation of this type of equipment, further impeding the technology's growth. Ultimately, they became as Inexperience wi h Hea Pump resistant - if not moreso -resistant to heat pumps than the customers. Sys ems Change Happens Slowly Heat pump market share is relatively low, and this is especially true for ccASHPs. Contractors typically promote and install systems they know and trust, and they In most regions, contractors are largely unaware of their applicability in different may resist new technologies despite the benefits for customers. Many contractors are installation scenarios and climates. There are some resources available to contractors frustrated by continuously having to incorporate new technologies into their business such as manufacturer trainings and online guides and workshops provided by energy models. Many are more interested in providing an uncomplicated service than efficiency programs. However, when contractors don't take advantage of these they are in promoting or upselling equipment that can be difficult to explain to the opportunities (whether due to unwillingness or ignorance), they can make uninformed customer and more challenging to install. In market research conducted by the Center recommendations to customers or deliver faulty installations. for Energy and Environment (CEE), which leveraged focus group data and a survey, HVAC contractors in Wisconsin noted that educating customers on ccASHPs could Retrofits can present distinct challenges and more opportunities for inexperience be a time-consuming challenge. Some of the contractors indicated that they primarily to create problems. Contractors may recommend ccASHP equipment sizes based sell heat pumps when customers ask for them. Customer awareness of heat pumps on apartment square footage, capacity of the old equipment, or their previous (especially ccASHPs) is nascent in most regions, and customers have their own biases experience, rather than conducting comprehensive energy audits or using towards the familiar. The resulting catch-22 means that opportunities for ccASHP recommended HVAC sizing resources such as Manual J calculations. In deeper installations are left on the table. retrofits where multiple energy efficiency measures are used, contractors can easily fail to account for efficiency improvements in the building shell and, consequently, Cus omer Sa isfac ion and Keeping oversize the equipment. If the upgrade is a fuel switch, contractors may not fully Energy Cos s Low understand—or be able to articulate to customers—the necessary upgrades to the electrical infrastructure, the associated costs, and long-term benefits that can offset Contractors pay close attention to heating costs incurred with different energy upfront costs (reduced operational costs over the long term, etc.). sources, and historically, gas is significantly less expensive than electricity. While there is ample data to show that implementing all-electric designs is less expensive in the Evaluations from several states found that when heat pumps were not designed new construction market, as the properties do not require gas infrastructure (pipes, and operated properly, they achieved lower-than-anticipated energy savings. meters, etc.), fuel switch upgrades in the retrofit market can drive up consumers' Contractors get call-backs when customers have problems with the equipment, and energy costs depending on factors such as climate and utility rates. because they may not understand that the failings were with the installation and not the technology, we could ultimately see a recreation of the pattern the industry experienced with first-generation heat pumps. www.aesp.org | second quarter 2022 19

WHERE DO WE GO FROM HERE? In he Works and Nex S eps Addressing he barriers In some parts of the country, heat pump training for contractors has been integrated into decarbonization or heat pump deployment efforts. For example, the Informed by its engagement with contractors, the CEE recommended that materials City and County of Denver's Office of Climate Action, Sustainability, and Resiliency and training focus on energy costs, switchover temperature, system design and sizing, recently awarded funding to launch the Denver Clean Energy Construction Career system selection, and proper installation. Further, they noted that while most of the Accelerator, which will help HVAC contractors learn to install and maintain ccASHPs contractors involved in the research had attended manufacturer trainings (primarily via on-the-job training at affordable housing retrofit sites. The Mass Save program Mitsubishi trainings), those trainings typically lack details that help contractors sell the in Massachusetts offers training that includes courses on ccASHPs' capabilities, technology to customers, instead focusing on technology performance. performance, and comfort, as well as weatherization and effectively selling ccASHPs. The New York State Clean Heat Program requires new ASHP installers seeking to Effective trainings will need to provide comprehensive education, on-the-job become participating contractors to receive manufacturer-sponsored ccASHP training, and supplementary resources to support ccASHP installations in both the trainings, and provides numerous online resources to support successful installations. new construction and retrofit markets. To ensure contractors are equipped to tackle the complexities inherent in retrofits, trainings will also need cover the conversion of As we move forward, energy efficiency industry leaders such as utilities and their various HVAC systems and fuel switch upgrades, the need for any added penetrations program implementers can help close the skills gap. By coordinating resources to the building envelope, and of course—proper sizing. Such experience will expand and expertise with key stakeholders such as HVAC associations, governments, and the services contractors can provide post-training and enhance their value proposition local workforce development programs, they can support the growth of an HVAC with future customers. Contractors need sufficient understanding to take the necessary workforce that can design, install, and maintain advanced heat pump technology. steps, whether through collaboration or additional education and certification, to develop and implement scopes of work that leverage all measures necessary to About the author maximize energy savings and reduce energy costs. To reinforce and expand the talent pool, trainings will need to target both current contractors and entry-level workers. Robert Foley Northeast Energy Efficiency Partnerships (NEEP) offered specific training Robert Foley is the Technical Solutions Specialist at ICAST (International recommendations which, though developed as part of a regional initiative, are widely Center for Appropriate and Sustainable Technology), a nonprofit that applicable. The recommended trainings include information on how the technology delivers energy efficiency upgrades to multifamily homes. A veteran in works and important differences from older ASHPs. Trainings should also leverage the clean energy space, he currently provides clean energy workforce existing installer best practice resources, some of which NEEP has developed. training as part of ICAST's programs and has trained hundreds of individuals. He also conducts energy audits and modeling and assists Further, messaging in the trainings should be tailored to resonate with specific in program and custom incentive design. His credentials include HVAC stakeholders. For example, with traditional HVAC contractors, they recommend: contractor's licenses in New Mexico (MM98) and the City of Denver; \"ASHPs offer a cooling solution, especially well-suited for homes that heat with general contractor licenses in Utah (B100), New Mexico (GB98), and California; and NATE and BPI Building hydronic systems, as well as a highly efficient heating solution to customers.\" For Analyst certifications. fossil-fuel heating system installers, they recommend: \"Inverter-driven ASHPs provide an attractive additional product offering that is relatively easy to install, offers cost savings opportunities to [installers'] customers and can keep work force busy year- round.\" Such messaging requires adaptation for different contexts, but it's worth noting that NEEP's efforts have achieved some measurable success since their inception. 20 Association of Energy Services Professionals

Appliance E ciency is Essential (and Achievable!) for Equitable Decarbonization By Anne Arquit Niederberger, PhD, SVP Market Development, Enervee Many in the industry don’t fully appreciate the Even industry insiders may not fully appreciate the importance importance of appliance and other plug load of appliance and other plug load efficiency as a contribution to efficiency as a contribution to energy bills or to energy bills or to achieving greenhouse gas reductions equitably. achieving greenhouse gas reductions equitably, In our nation’s blueprint to achieve net zero emissions by 2050, despite the fact that this is the main focus for the White House identified increasing the sales share of clean and the buildings sector in the White House Long- efficient appliances as a core greenhouse gas (GHG) mitigation Term strategy to reach net zero emissions by strategy for the buildings sector.1 2050. A new program design to ensure that every purchase is an efficient purchase has Shining a spotlight on energy-using consumer product markets been rolled out by SoCalGas (https://www. is important, because efficient appliances are expected to reduce ecofinancing.com/) and will be deployed emissions more in this decade than rooftop solar or EVs.2 This early May statewide in New York, with a focus article reviews the evidence and offers a case study of a new utility on low- and moderate income households. It program design that drives efficient retail purchases by traditionally involves the integration of Eco Financing into hard-to-reach customer segments. the online marketplace shopping experience to overcome the up-front purchase price barrier. There’s more to buildings than the shell – the outsized contribution of appliances to residential electricity use With all of the talk about “deep retrofits”, “whole home” approaches and workforce education, it’s easy to forget that the bulk of electricity consumption is associated with simple plug-in devices, like refrigerators and televisions, purchased by individuals at retail – most of which don’t require the support of a contractor. 1. The Long-Term Strategy of the United States: Pathways to Net-Zero Greenhouse Gas Emissions by 2050 2. The Customer Action Pathway to National Decarbonization www.aesp.org | second quarter 2022 21

Source: 2019 California Residential Appliance Saturation Study [3]. UEC = unit energy consumption. Plug load end-uses are blue, non-plug-load end-uses are purple and end uses that include a mix are in orange. When you tally up all of the plug load end uses, Source: California 2021 Low-Income Potential and Goals Study [5] including portable and room air conditioners, they account for between two-thirds and three-quarters of But how do we influence I invite you to consider another recent California household consumption in my home state of California, hundreds of millions of buying study,5 which looked at efficiency potential in the low- a share that has increased over the past decade.3 decisions? income customer segment and found that over 57% of Refrigerators and freezers alone account for 25% of electric savings potential in 2030 was associated with electric unit energy consumption (Figure 1). The same Despite dominating electricity demand – and appliances and other plug loads (Figure 2), not the basic pattern can be seen across the country, for contrary to the nationwide Brattle study cited above – least because such measures generally are quick and example, in the Energy Information Administration’s the 2021 Potential and Goals Study for California [4] easy to install (don’t require professional installation) 2015 Residential Energy Consumption Survey data. identified zero achievable potential to cost-effectively and, for renters, don’t depend on building owner reign in the electricity consumption of appliances authorization. Stop energy waste behind the and other plug loads with energy efficiency rebate meter for the greatest emissions programs. So why do these studies find large residential plug reductions load efficiency potential for the low-income segment, Think about that. This study suggests that we have but none for other residential customers? There are two Despite the headlines, climate mitigation is not all no way to reduce over two-thirds of the electric main reasons for this counter-intuitive result: about greening the grid by increasing the share of consumption of households, despite high electricity electricity generated from renewable sources...or about rates, within the current cost-effectiveness framework in •The model framework doesn't reflect the potential electrifying end-uses. A recent study by The Brattle California. So, should we just throw in the towel and of innovative programs that focus on eliminating Group for Oracle found that individual residential leave consumers to their own “devices”? barriers to efficient purchases in the course of customer actions have the potential to reduce GHG natural replacement cycles, without incentives, and emissions by nearly twice as much as supply-side reductions and that electric efficiency measures are by far the largest component of total residential emissions reduction potential in 2030, more than rooftop solar.4 And, lest we forget, the vast majority of the electric efficiency measures are appliances and other plug-in devices, typically bought at retail by individuals. The one-time decisions that each of us make when it’s time to buy a new refrigerator or television will impact our energy bills and greenhouse gas emissions footprints over the lifetime of the products, over a decade, on average. That’s why it’s so important to tap into these natural replacement cycles and ensure that every purchase is as efficient as it can be. It also explains why this is such a big opportunity: We only need to influence a single buying decision now to get a lifetime of climate benefits – and Americans buy roughly 1 billion energy-using devices annually. 3. 2019 California Residential Appliance Saturation Study 4. 2021 Energy Efficiency Potential and Goals Study 5. 2021 Low-Income Potential and Goals Study 22 Association of Energy Services Professionals

Source: Yale Climate Opinion Maps 2021 [6] •California’s energy efficiency cost-effectiveness framework This innovative inclusive financing program has also demonstrated its ability to reach penalizes private investment by taking into account participant underserved borrowers – both LMI and credit-challenged – and deliver equity benefits costs. The low-income energy efficiency program offers free (Figure 6). products (no participant cost) and uses a different approach to cost-effectiveness, capturing much more of the technical potential. So, is giving away free products to everyone the answer, or is there a better, more pragmatic, lasting and affordable approach? Economics 101 and policy best practices tell us that the way to transform markets at scale is to ensure transparency and competition and eliminate barriers that prevent consumers from acting on their ambition to buy efficient products for their homes that will reduce bills and protect the climate system. Sixty-five percent of Americans think individual citizens should do more to address global warming (Figure 3), and this value is above 50% in every state in the union.6 As shown above, the most impactful thing a consumer can do to reduce greenhouse gas emissions is buy energy efficient appliances. That single purchase decision will drive lasting greenhouse gas emissions over the lifetime of the product (over 10 years, on average). What this means for efforts to cut residential greenhouse gas emissions between now and 2030 is that the consumer is the key to success. Eliminating barriers, empowering consumers The trend towards online shopping, which got a boost from COVID-related stay-at-home orders and remote work options, represents a significant opportunity to revamp product efficiency programs with a view to eliminating pervasive and persistent barriers and transforming entire markets rapidly and at scale. Online research is ubiquitous, and the share of major domestic appliances bought online has already surpassed 30%. Take the large kitchen appliance market as an example: The U.S. online market grew at an annualized rate of 12.8% between 2017 and 2022, reaching $10.2 billion in 2022.7 The core barriers that prevent consumers from buying the efficient products they aspire to – namely, market, cognitive, psychological, and financial barriers – can all be tackled through online retail channels. If done right. A growing number of academic studies and independent evaluations have demonstrated that a consumer-centric, energy-aware online retail channel, designed with economic and behavioral insights in mind, can drive more efficient purchases, without the need for rebates.8 6. Yale Climate Opinion Maps 2021 7. Online Large Kitchen Appliance Sales in the US - Market Size 2002–2027 8. Eliminating Market & Behavioral Barriers with Choice Engines www.aesp.org | second quarter 2022 23

Inclusive Eco Financing Case Study Takeaways for energy and climate professionals In Q3 2021, SoCalGas was the first utility in the country to introduce financing The bottom line is that effective climate mitigation in the residential building sector (in the form of 60-month term loans) as a payment method for retail purchases made will need to be driven by an increase in the sales share of energy efficient appliances on the SoCalGas Marketplace, overcoming the up-front purchase price barrier. and other plug loads. To summarize: Eco Financing, offered by vendors Enervee/One, is currently available on laundry and kitchen appliances and is delivering exciting initial results (Figure 5), including • Individual retail purchase decisions have an outsized impact on a home’s reaching renters and driving appliance recycling. electricity consumption and GHG emissions, as they lock in demand over the lifetime of the product. This innovative inclusive financing program has also demonstrated its ability to reach underserved borrowers – both LMI and credit-challenged – and deliver equity • Traditional product energy efficiency and climate programs leave this savings benefits (Figure 6). potential largely untapped. This would not have been possible without the utility ratepayer-funded credit • The right program designs – ones that focus on eliminating barriers and enhancement made available by the statewide GoGreen Home Energy Financing empowering consumers – can capture much more of that potential, while Program, administered by an agency within the California State Treasurer’s Office. shielding utility customers from bill increases driven by other costs, such as grid GoGreen Home covers 90% of losses, reducing the risk to private capital providers, modernization and wildfire mitigation. so they can extend affordable credit to customers with credit scores as low as 580. • Inclusive financing of retail purchases, integrated into the online shopping June 2022 will see the launch of Eco Financing for customers of another large experience, is a promising new program approach to serve traditionally hard-to- California utility (Southern California Edison), under the third-party Enervee reach customer segments. Marketplace pay-for-performance program approved by the California Public Utilities Commission. Utilities are well placed to implement programs to change customer buying behavior, and new program designs are being implemented to drive equitable A similar Loan Loss Reserve Program is available to lenders in New York State, decarbonization. and Enervee will be tapping into that program to launch a statewide marketplace in Q3 2022. The program will include Eco Financing and target low- and moderate- income households, in partnership with the NY State Energy Research & Development Authority. In addition, some utilities are considering establishing Loan Loss Reserves directly, to achieve equity, energy efficiency and climate goals. About the author Anne Arquit Niederberger, Ph.D. Anne Arquit Niederberger, Ph.D., is Senior Vice President for Market Development at Enervee. With a background in climate research and policy, Anne has a track record of spearheading innovative and impactful implementation partnerships. In the U.S., she was instrumental in bringing inclusive retail Eco Financing to market, filling a major gap in energy efficiency programming. Prior to Enervee, Anne was Principal at Policy Solutions, advising government and private sector clients in dozens of countries (often via international financial institutions like the World Bank) on clean energy and climate strategies and programs, and led Swiss international climate diplomacy and policy, while participating in the Intergovernmental Panel on Climate Change. 24 Association of Energy Services Professionals

Can Community Energy Help Achieve Climate Goals and Create a More Equitable Society? By Gemma La Guardia Energy is the new vector for social justice. used to discharge energy at peak times, reducing the the projects per se, they can still benefit in the form of need to fire-up natural gas peaker plants. The result is cost savings, job creation, access to clean energy and The gulf between rich and poor in developed cleaner energy and improved air quality. improved local environment. countries is being widened by energy-related issues. Poorer people are harder hit by rising energy prices. Renewables and storage hold huge promise, not Community energy projects can provide a plethora They often do not have the funds and tools needed to only for the environment, but for our health. However, of different benefits to the community. First and foremost, conduct energy efficiency alterations to living spaces, without a framework that involves and benefits the they can provide monetary benefits: these can come in and often live in areas that are negatively impacted communities in which they are based, they can also the form of revenues from power generation or land by the generation of energy from fossil fuels. This can ignite the wrath of locals. rental. The Lawrence Weston wind turbine community entail a range of health issues caused by poor air, project in England provides a perfect example. water and soil quality. In England, a green power line that has been Lawrence Weston, a housing estate in Bristol, has been approved is slated to run through the middle of the awarded the funding to build a single, 4 MW wind But new technologies can help to drive the clean English countryside, between Norwich and close to turbine, which will provide power and sell energy back energy transition equitably. Take peaker plants that London. The power line will provide clean energy to the grid. It is estimated that the turbine will yield close operate on fossil fuels, for example. Peaker plants to the capital, but ploughs its way through historical to £100,000 a year in revenues that will be invested in are used when energy demand is high (at peak towns, forests and fields, scarring the countryside and the housing estate. demand) and are often only on for a few hours at a endangering local wildlife. It’s no wonder the locals time. However, they have a disproportionate effect on aren’t happy. A second benefit is job creation. In Canada, for the environment, emitting almost double the amount example, rural indigenous communities have long of carbon dioxide and nitrous oxide than baseload So how might we create better access to clean been reliant on diesel generators to power their homes. power plants. This is due to the amount of energy energy for all citizens? It’s too easy to say “invest”. In a push to provide clean energy to these communities needed to ramp up short-duration generation, and the We need to invest in a manner that adds value to as well as provide jobs, community projects funded lower efficiency of single-cycle generators. Because communities. by the Canadian government train young indigenous of their heavy emissions, they also contribute to higher Canadians in a range of trades within the renewables rates of health issues such as cancer and asthma. Community Energy Projects industry. Indigenous Clean Energy, a Canadian not- for-profit, estimates that indigenous community energy However, energy storage technologies, such as Community projects are a good starting point. projects have provided 19,135 person years of lithium-ion batteries, can help to solve that issue. By We can define community energy projects that construction employment, and 2,870 person years of storing energy from renewables, batteries can be are typically either partially or fully owned by the maintenance employment. community in which they are situated. Although some in the community may not derive pecuniary rewards from www.aesp.org | second quarter 2022 25

Lastly, community energy projects are often paired How do they work? Ending reflections with educational projects which teach people within those communities about the effects of climate change All community projects share at least two of three Community projects have the potential to both and the benefits that renewables can bring to them and defining characteristics, according to the International achieve climate goals, and alleviate poverty. They are the wider world. In Canada, once again, the effects Renewable Energy Agency in its 2020 Community becoming increasingly popular mechanisms through of government-funded projects are wide reaching. Ownership Brief: which governments can drive change and increase Funded by the Clean Energy for Rural and Remote access to renewables. However, obstacles remain. Communities programme (CERRC), the Inuvialuit 1. The profits are redistributed to the community, Often unfriendly regulatory and policy environments Regional Corporation has set up a project that will mean that community energy projects have a tough “promote energy literacy in communities, renew 2. There is a level of democratic governance time getting up and running. A lack of financing also Inuvialuit dialect and culture, and promote cross- stunts deployment. A recent example of this is the UK’s generational learning between Elders and youth on 3. There is a set ownership structure. new Energy Security package which has come under traditional practices, language and sustainability”. fire from activists for not setting aside any funds for These holistic, all-encompassing projects do more This mix of characteristics is found in five principal community energy projects. We have the opportunity than just provide education about climate resilience. business models for community energy projects. to both wean ourselves off fossil fuels, and provide a They also strengthen the sense of community and help more equitable future for everyone. This is possible, but cement the feeling that “we’re all in this together”. COOPERATIVES we must ensure we make the right political choices. Other education projects funded by the CERRC include ones that target underserved demographics, such as • Cooperatives are jointly owned projects between About the author women. all members of the community, based on the idea of “one member, one vote”. Gemma La Guardia Community energy and the decarbonization journey PARTNERSHIPS Gemma La Guardia is a Consultant and Research Associate at Guidehouse Community energy projects are a good way of • Partnerships are based off a variety of partners Insights within the Energy, Sustainability accelerating wider decarbonization goals. This is not owning shares. The key objective here is to generate and Infrastructure team, specialising in only because it will mean that a greater percentage wealth for the shareholders. microgrids, energy equity, and hydrogen. of a country’s population is reliant on clean power instead of a fossil fuel-based grid. NON-PROFIT ORGANISATIONS Grid-connected community projects can provide • Non-profit organisations are financed by members, grid flexibility, selling energy back to the grid that can but do not expect to take home any profit. Any be used for load-shifting and peak-shaving. This brings profits are re-invested into the community. us back to our initial example of the peaker plants and energy storage. In 2020, utility Southern California COMMUNITY TRUSTS Edison opted to not build a new peaker plant after community pressure, but to invest in a 100MW energy – Community trusts reinvest the profits from community storage farm. Though not a “community project” per projects into the community. Non-trust members can say, it has a direct influence on the people living in the also benefit from the projects surrounding area, as well as providing grid flexibility. HOUSING ASSOCIATIONS Furthermore, community projects can help improve grid resilience. This has been demonstrated with – Housing associations are a type of non-profit microgrids in the United States, that are able to provide organisation, typically offering housing to low- power to communities and keep basic services running income people and families. in case of natural disasters. For example, San Diego Gas and Electric installed a purpose-built microgrid However, community projects cannot flourish in in 2013 to create resilience against wildfires and every environment. It may require a significant helping storms. Almost 10 years down the line, microgrids hand from state or local governments. have become the de facto option to help mitigate the increasingly savage effects of climate change in Community projects need a proper enabling California and the rest of the United States. policy framework. This can range from feed-in-tariffs to specific grants or funds. The European Union, for Last but not least, community energy can increase example, has highlighted community energy projects access to renewable energy across the board. This as key in achieving decarbonization goals, and is at its most obvious in developing countries, where has passed a raft of bills to ensure that they can be segments of the population have little or no access to deployed easily, through its Clean Energy Package electricity. In Nigeria, Husk Power is installing 500 mini- and Renewable Energy Directive II (RED II), which grids in order to provide power to rural communities. are to be translated into national legislation. For This allows these communities to minimize the use of example, Portugal has recognized renewable energy fossil fuels, and kickstart the renewable transition. communities as legal entities, stating that they help In other communities, such as indigenous and rural Portugal achieve its renewable energy targets, as well Canadian communities, these projects help reduce as benefiting communities, and help alleviate poverty. dependence on loud and polluting diesel generators. The legislation also mentions tax breaks for renewable Chief Dana Tizya-Tramm of the Vuntut Gwitchin First energy communities. Nation said of the switch to renewable microgrids in the village of Old Crow: “We can now enjoy silence But policy framework is not enough. Eased and hear our animals and the crows caw from across regulatory and permitting frameworks are also needed our village for the first time in 50 years”. in order to set up and run the projects, allowing them to sell energy back to the grid. They also need access to financing tools to help them get set up. The Canadian government, for example, runs a number of different programs, including the aforementioned CERRC, that are aimed at setting up and funding community energy projects. 26 Association of Energy Services Professionals

Community-based Social Marketing Can Energize the Impact of Energy Efficiency Programs The future of residential programs in a post- pandemic world depends upon interactivity, motivated engagement and analytics By Dr. Hal T. Nelson In 2012, the California Public Utilities Commission opened the door for experimental pilots in residential behavioral energy efficiency programs. Over the course of the following decade, behavioral programs spread across the world and saved customers millions of dollars on their energy bills. But the dominant type of residential behavioral program to emerge from this trend, the mailing of home energy reports (HERs) to utility customers, has had a limited impact. These programs provide consumers with a comparison of their energy usage to that of their neighbors, attempting to change behavior by leveraging social norms. A 2016 review of 31 programs implemented found median annual electricity savings of 1.6 percent and median gas savings of .8 percent.1 While energy savings can be statistically significant, HERs programs have drawbacks. Savings decline when the programs end, as the most common actions taken are switching off lights and using appliances less often rather than making lasting capital improvements. There are also significant equity issues with these programs as energy savings are greater for larger, inefficient properties owned by wealthier households. Furthermore, these programs nearly always target the single-family sector, bypassing the most vulnerable residents who tend to live in multifamily residences. The Covid pandemic has highlighted the disparities in equitable outcomes between owner-occupied housing and other housing types. A 2021 report from the Consumer Financial Protection Bureau revealed that 2.1 million homeowners, or about 6 percent of all those with a mortgage, were at least 3 months behind on their mortgage payments. In contrast, 8.8 million renters, or roughly 18 percent, were behind on rent payments.2 In addition, it has been documented that renters pay more for energy services than housing owners due to a landlord-tenant market failure.3 1. Sussman, R., & Chikumbo, M. (2016). Behavior change programs: Status and impact. Washington, DC: Sources: American Council for an Energy-Efficient Economy. October. Black Solar Panels on Brown Roof, Vivint Solar, 2019, Pexels (https://www.pexels.com/photo/black-solar-panels-on-brown-roof-2850347) 2. Consumer Financial Protection Bureau. (2021). Housing Insecurity and the COVID-19 Pandemic. p. 6 Building Old Architecture, Markus Winkler, 2020 Pixabay, (https://pixabay.com/photos/building-old-architecture -wood-5472665) 3. Nelson, H. *Gebbia, N. (2018). Cool or School: The Role of Building Attributes in Explaining Residential Energy Burdens in California. Energy Efficiency. Volume 11( 8). pp 2017–2032. www.aesp.org | second quarter 2022 27

Thinking Outside the HERs Box New behavioral program designs offer utilities and local governments the ability to Source: FreePik reach previously marginalized sectors, reduce energy burdens, and mitigate carbon emissions. Presciently recognizing the limitations of the dominant HERs approach, 3) Scale-up behavioral programs by using opt-out a California pilot called Communities for Conservation (CfC), was implemented program designs. It is well known that utility between 2017 and 2018 in a partnership between Southern California Edison and programs do not scale-up when customers are SoCal Gas and funded by California ratepayers. It focused on incentivizing multifamily required to opt-in for participation. Subsequent residences to reduce electricity, gas, and water-use using a competition for prizes.4 program effects are difficult to be causally linked The randomized pilot design targeted both owners as well as tenants for engagement to the program as there is a likely selection bias with tenant brochures, door hangers, lawn signs, as well as countertop posters in from green-oriented customers who might have rental offices. The outreach material included property-level energy benchmark taken the actions anyway. It is important to note scores and other best-practices usage information to overcome educational barriers that successful opt-out programs require big data analytics. The CfC pilot was about energy use.5 The pilot leveraged big data analytics to scale-up the competition possible only because of the remote sensing, spatial analytics, and advanced to 2,200 properties that included more than 64,000 apartment units. The results were statistical analyses that enabled energy and water benchmarking for the 64,000 surprising: apartment households. (Only in California would this be considered a \"pilot\"). The CfC pilot required no analytical effort by participants; unlike competitions • The least efficient properties ended up with an average electricity savings of 301 that require property owners/managers to spend hours uploading property and kWh per month (2% of use). Gas and water savings were not statistically building information to a clunky government website for energy benchmarking. significant. The CfC included water conservation in addition to gas and electricity which can spread opt-out program costs across additional rate bases. • These results could provide an estimated annual savings of 33 million kWh if the program was expanded to the electric utility's entire service territory. This is 4) Temporary behavioral changes aren’t enough by themselves: To guarantee equivalent to the 2020 annual electricity consumption of about 4,600 southern long-term energy savings and reductions in customer energy burdens, program California households. planners and implementers need to convince landlords to make capital improvements to their properties. These can include insulation, lighting, and Competition-based conservation programs are not new; college dormitories efficient appliances. Tenants should be offered low-cost, portable energy have been competing to save energy for decades. Dorm competitions illustrate the efficiency measures such as window fans and smart power strips. This requires challenges facing behavioral programs: high implementation costs keep the programs cross marketing existing energy efficiency program measures such as rebates to small, and a selection bias occurs where only highly motivated participants opt-in to the participants. Utilities traditionally hesitate to do this, as it potentially double- participate. This limits the ability to make causal inferences about the effects of the counts energy savings under the behavioral program as well as the rebate competition. Large-scale, competition-based behavioral programs are rare in the program. To remedy these concerns (and open up new business models for energy-efficiency world. Recent research identified a total of 53 energy-efficiency implementation), next-gen behavioral programs should utilize actual metered programs that include some gamification, going back to the year 2007. While only a energy savings that control for weather differences. These \"real-time\" savings handful of the programs studied actually quantified resulting savings, the nine that did calculations are already required as part of the advanced analytics of the demonstrated savings in the 3-6 percent range. behavioral program. Lessons Learned This brief review of behavioral programs as well as the author's experience with the Communities for Conservation design, implementation and evaluation reveals five key lessons that can inform future innovations in competition-based behavioral programs: 1) Prizes have to engage (and be useful to) property owners AND tenants. The CfC pilot offered programmable thermostats as prizes which didn’t necessarily motivate residents of rental properties. The $2,500 Energy Star equipment prize held little practical appeal to tenants. A good prize is a salient prize, one that is meaningful and appealing to all stakeholders. Next- generation prizes might be tickets to an NBA game or other popular event, something Source: MLB.com, NBA.com that can transform tenants into neighbors by building social networks and community capital. 2) Competitions need to get these neighbors talking to each other. These social interactions introduce new behavior change mechanisms not found with the static nature of a HERs report that is mailed to the utility customer. Consider the truism that people are more likely to purchase solar panels or electric cars when they see their neighbors making such a purchase. Research indicates that the impact of social influences are statistically significant, with block leaders and public commitments having the largest effects.6 Source: Nelson, 2022. Note: ECM = Energy Conservation Measure 4. 10-10-10+ Multi-Family Behavioral Pilot Program: Final Analysis. 5. More information on the pilot can be found in the presentation of the Communities for Conservation Multi-Family Competition Results. BECC –Washington, DC. Oct 2018. 7. Abrahamse, W., & Steg, L. (2013). Social influence approaches to encourage resource conservation: A meta-analysis. Global environmental change, 23(6), 1773-1785. 28 Association of Energy Services Professionals

Source: Nelson, 2022. 5) Programs with lots of customer \"touches\" are expensive: Scaling up next-gen Broadening engagement also implies revisions to historical energy efficiency behavioral programs requires reductions in the cost of implementation through program practices. Scaling-up program participation through an opt-out recruitment marketing automation and community-based social marketing. Community-based design could encounter political resistance. This requires coalition building around the social marketing engages community networks for efficiency upgrades using expected benefits of the program. Advanced analytics need to be included as part of their shared interests and identities. Imagine your city's high schools leading a the program and redacted energy-use information such as building energy benchmark competition to save energy that engages their students, teachers, parents, alumni, scores and customized conservation measures need to be shared with stakeholders. district residents, and local businesses. Marketing automation leverages social Large behavioral programs need to be integrated into existing incentive programs. media, email and text messages to feed customers to the program's take-action The reliance on antiquated engineering-based energy savings methodologies need portal. Marketing automation is used by nearly every Fortune 100 company to give way to modern weather-normalized, metered energy savings. aside from utilities.7 It has been said that all energy efficiency savings are behavioral: a change in Diversifying Behavioral Efficiency Programs someone's behavior is required for the savings to occur. If you believe that, then the scope of the intervention in \"behavioral\" programs needs to be greater than a utility In closing, diversifying behavioral energy efficiency programs away from bill mailer with information on customer and peer energy use. Competitions that the dominant HERs approach will probably not be easy. Diversification requires include community-based social marketing that engage neighbors open up exciting regulators and utilities to recognize the structural changes to society from global new mechanisms for energy conservation behavior by residents. warming and Covid, as well as the increased focus on improving energy justice outcomes. Many low-income, Black, Indigenous, and other People of Color are About the author suffering under the triple burden of substandard housing, extreme temperatures, and high energy burdens. Dr. Hal T. Nelson These problems require the scaling-up of new approaches and inclusion of a Dr. Hal T. Nelson is an Associate Professor at Portland State University wider range of stakeholders. Local governments are strong partners for utilities in and the co-founder of Res-Intel, a Portland, Oregon-based AI energy large-scale competitions given their interests in water conservation, decarbonization, firm. He believes that advanced analytics and stakeholder engagement climate resilience, and mitigating social inequities. Local governments can also can help decarbonize the building sector, and can also help improve perform low-cost outreach through existing marketing channels. Schools, youth energy justice outcomes. Dr. Nelson is currently working on a project groups, neighborhood associations, environmental justice organizations, and local to help mitigate the displacement of vulnerable renters due to businesses are all natural allies in scaled-up energy savings competitions. gentrification from publicly funded energy efficiency programs. He is interested in ways to equitably and cost-effectively scale up stakeholder participation in decarbonization and resilience efforts. If you have ideas, interest, or experience with any of this, please email Dr. Nelson at [email protected] 8. More information can be found in the conference presentation Energize! A Municipal Residential Energy Efficiency Competition. Statewide Energy Efficiency Collaborative. Long Beach, CA. June 2019. 29 www.aesp.org | second quarter 2022

Bringing Energy Innovation to a Hub of the Traditional Energy Industry through Public Private Partnerships By Gillian Ward Transitioning to a Clean Energy About MyHEAT Workforce MyHEAT's heat loss maps provide unique heat loss maps of individual homes across entire cities using aerial collected thermal imagery. Each home is also assigned Alberta has long been a global energy leader and developer of energy industry a HEAT Rating of 1-10 to help the resident understand how efficient their home is technology initiatives. As the largest producer of crude oil in Canada, accounting for compared to others. The HEAT Maps are shared with residents to help pinpoint 80% of total Canadian production as of 2020, it is no surprise that this industry has areas of greater energy loss, and behavioral nudging techniques are used to prompt been the livelihood for many Albertans for decades. energy-saving actions. But Alberta also supports a growing technology industry. Technology firms MyHEAT is a private company that was built on six years of award-winning, peer- are not pushing out oil and gas investment, in fact, they are helping the traditional reviewed research led by Dr Geoffrey Hay, Geographic Information Scientist in the energy industry become more efficient and more environmentally friendly. Tech Department of Geography at the University of Calgary. We continue to work and industry growth is a crucial aspect of Alberta's economic diversification, and is driving share knowledge with the University today. continued investment in the province. At MyHEAT, we believe one of the key components of building a Clean Energy The tech sector offers a stepping stone to leverage transferable skills to develop Workforce is taking a multi-sectoral approach through public-private partnerships. a clean energy workforce. According to commercial real estate firm CBRE, Calgary Our experience in driving energy innovation stems from our roots in academia, our specifically has seen a 17.9% increase in its technology-based workforce between current work with Government at the municipal, provincial/state, and federal levels, 2015 and 2020 — an increase of 46,700 highly-skilled workers. Calgary has as well as our links to private businesses including gas and electric utilities. These also been trying to tackle its high downtown vacancy rate which has been severely partnerships drive economic growth in individual communities while supporting impacted by mergers, acquisitions and layoffs in the oil and gas sector, and has climate goals by providing a tool for residents to engage and create demand for climbed even higher due to COVID-19. As oil and gas tenants have moved out of contractors to drive installs for energy efficient upgrades. the downtown core, it has created opportunities for tech startups to capitalize on economical work space and create job diversification. Alberta's tech growth will advance innovation and help foster Canada's presence as a strong tech player internationally. 30 Association of Energy Services Professionals

Engaging Homeowners Across The objective of the project was to motivate action through behavioural change and educational channels to drive uptake in weatherization programs and home Various Cities retrofits, reducing gas consumption and increasing energy savings. In 2016, MyHEAT launched a publicly-accessible platform that allowed users The project also featured academic partners from the University of Ottawa to see areas of heat loss for over 640,000 single family homes across a variety and Carleton University who conducted a randomized controlled trial to measure of cities in Alberta, Canada. The freely accessible public platform was promoted consumption and program uplift amongst homeowners shown MyHEAT's visual through a broad range of social media campaigns. This helped Alberta residents heat loss details (as seen in fig.1) versus homeowners shown a traditional Home gain awareness of their energy savings potential and prompted them to explore their Energy Report (HER) versus a control group. This has been an ongoing partnership homes' heat loss. The platform's widespread visibility on social media allowed for since 2018, with the academic partners evaluating ongoing consumption data, some innocuous social competition between friends, family and neighbors. and MyHEAT collecting additional thermal data in 2021 and 2022. The MyHEAT Medicine Hat project has enabled the researchers from the universities to co-author, The HEAT Maps provided a valuable starting point for homeowners to understand and publish several iterations of academic papers in the energy efficiency field. how energy was escaping their homes — something they previously couldn't see. The This contribution supports the career advancement and academic prosperity of the data provided valuable insights into which areas of the home to focus on in order to academics and universities alike. reduce energy consumption, seal cold drafts, and ultimately save money by reducing energy utility bills. Using Visual Imagery as a Behavioral Links to Resources: Medicine Hat Case Study - https://myheat.ca/case-studies/medicine-hat Nudge to Motivate Energy saving Action Heat Loss Page - https://myheat.ca/ One of MyHEAT's first public-private projects was a partnership with Natural Resources Canada and the city of Medicine Hat, Alberta's municipally-owned combined gas and electric utility. Medicine Hat is a key hub of Canada's natural gas industry, located in a politically conservative city of about 63,000 people. It has been nicknamed \"The Gas City'' due to an abundance of natural gas resources and its resulting impact on the local economy. About the author Gillian Ward Gillian Ward is a Business Development Analyst for MyHEAT. As a recent graduate, she is passionate about immersing herself in the cleantech industry to learn more about how technology can mitigate the effects of climate change. Gillian resides in Calgary, Alberta and holds a Bachelor of Business Management degree from Dalhousie University. www.aesp.org | second quarter 2022 31

ComEd’s Clean energy workforce development joins Clean Energy diversity, equity and inclusion efforts in Workforce ComEd’s Energy Efficiency Service Provider Development (EESP) Incubator. Since 2019, ComEd has Targets led the nation in increasing opportunities for Communities diverse contractors by offering training to In Need join its EESP network and submit projects to its Energy Efficiency Program. In that time, By K.C. Doyle 66 diverse contractors, representing woman- owned, minority-owned, veteran-owned and 32 Association of Energy Services Professionals disabled-person owned businesses, have graduated from the Incubator. Of those, 51 have joined ComEd’s EESP network and, to date, have submitted 1 energy efficiency projects. Many of those projects are located in communities in need, proving that the Incubator is helping ComEd reach new customers with each annual cohort training effort.

For ComEd, the electric utility serving northern Illinois, powering lives is more than “They are our partners,” said Gil, “and our success is tied to their success. The delivering electricity to its customers. It also includes: success of our customers and communities will always be at the center of everything we do here at ComEd.” • Providing impactful energy efficiency opportunities; Over the years, the ComEd Energy Efficiency Program has grown more effective • Ensuring that customers have the choices they need to thrive; in helping customers of all kinds reduce their energy bills and consumption, which also helps all of us reduce dependence on fossil fuels. As we work to expand • Empowering communities to meet their ever-evolving energy needs, and energy efficiency offerings and meet new demands in today's climate and economy, ComEd also invests in programs that support our diverse suppliers and provide more • Supporting the region’s workforce and economy through utility-driven clean opportunities for them to grow and make a positive impact within their communities. energy innovation and opportunity. Investing in businesses owned by people of color, women and veterans is one of our greatest opportunities to build equity throughout our service territory. This is especially true for our customers and communities in need. ComEd saw an opportunity to develop programs to address the disparity felt in these areas, while ComEd is committed to providing access to technological advancements, providing employment opportunities for residents, especially those men and women including those in energy efficiency, equally to all customers and communities. trained as lighting, HVAC or general contractors. “We need to prioritize investments in disadvantaged communities and create clean energy jobs to support local economic development,” said Gil. “We want to make As a result, ComEd created its Energy Efficiency Service Provider (EESP) Network. sure that we keep energy affordable and create access for all to participate in becoming more eco-friendly. A cleaner future includes everyone. If it’s not for all, it EESPs are the contractors who install energy efficiency measures and are is not for us.” considered by ComEd customers to be the “face” of energy efficiency, the first point of reference for incentives and rebates that can help them reduce their energy use Since its inception in 2008, the ComEd Energy and save money on their utility bills. In 2019, ComEd created the EESP Incubator Efficiency Program, has provided measurable Program to focus on recruiting diverse contractor businesses, and to support the contributions toward Illinois’ clean energy future: development of all contractors interested in joining the network by offering education and training on ComEd Energy Efficiency Program offerings. The program also • ComEd customers have saved over 56 million provides wrap-around services for certification applications, business growth plans, megawatt hours of energy usage and a total of project financing, and identifying and resolving barriers to building a successful $6.7 billion on their electric bills. business in the energy efficiency field. • This energy reduction also reduced carbon dioxide At the end of the program, diverse contractors are encouraged to apply to emissions by over 61 billion pounds, the equivalent ComEd’s EESP network and, once accepted into the network, provide ComEd of taking 6 million cars off the road for one year. Energy Efficiency Program incentives to customers and grow their businesses through the successful completion of energy efficiency projects. • Over $1.5 billion in incentives have been issued, allowing northern Illinois customers to reinvest in Ramon Hayes, small-business owner of Eco-Energy Solutions, a service-disabled, their homes, businesses and communities. veteran-owned business, is a 2019 incubator alumnus. Prior to participating in the program, Ramon relied on a small client base and single contract to keep his For over a century, ComEd has kept its promise to northern Illinois communities business doors open. The Incubator team, through one-on-one sessions, assisted and customers to be more than an electric delivery company. ComEd delivers on Ramon in developing a business growth plan and provided opportunities to enhance that promise every day, empowering its communities, driving innovation, increasing his networking abilities. a diverse workforce, and supporting its customers in embracing a brighter tomorrow. The ComEd Energy Efficiency Program and its EESP Incubator, are key factors in “The Incubator Program was really instrumental in allowing me networking delivering this promise. opportunities and in putting me in front of major players in the Energy Efficiency space,” said Ramon. “It’s actually really simple. There is no way I would be doing the volume of business that I am doing, had I not gone through the Incubator Program.” Ramon is now mentoring current Incubator cohort members in energy efficiency project best practices. Eco-Energy Solutions is one of 66 contractor businesses that have participated in ComEd’s EESP Incubator since its inception. Of those participants, 51 have joined the EESP Network and, to date, have submitted 133 energy efficiency projects to ComEd. Many of those projects are located in communities of need which aligns with ComEd’s vision for a clean energy future for all communities it serves, but especially for those most vulnerable to the impacts of climate change. As ComEd CEO Gil C. Quiniones believes, a clean energy future is tied to equity and opportunity for all communities. About the author K.C. Doyle K.C. Doyle is a Senior Program Manager for ComEd, managing its Energy Efficiency Service Provider (EESP) Network and its EESP Incubator Program. Prior to joining ComEd, K.C. served as sustainability manager for Cook County, Lake County and the Village of Oak Park. K.C. received her J.D. from Chicago-Kent College of Law and practiced environmental law for 10 years. She is a proud alumna of Marquette University and the mother of three children. www.aesp.org | second quarter 2022 33

Building the Clean Energy Workforce of Tomorrow By Gian-Gabriel Masoni Dobles Featuring an interview with Chris Valle and Paul Douglas As in other industries, clean energy is struggling to but that’s sometimes at the expense of the candidates. can come at the cost of a fresh outsider perspective, find winning candidates. This comes at a time when the There’s a danger of designing these programs only to practical insights and the benefit of first-principles demands of the clean energy sector are growing at an realize there are other problems that we really need thinking. astronomical pace. In a situation where the preeminent to address in support of developing a career. For challenge is access to talent, there is a pressure to get example, transportation. If folks don't have peripheral Chris continued, “Often enough you don’t need people in at the ground level and equip them with tools to simply get to class, these programs will never a degree for outreach, what amounts to a technical the kinds of skills that will make them intrinsic to an work. There’s a skills gap across the board in America. sales job. Those folks, if nurtured, often rise to become equitable energy transition. Your less conventional candidates need training, program managers. I think the track for progression in resources and mentorship for them to be successful this career can open up a pipeline of talent that we Several partners around the country, including in a clean energy career. Mundane challenges like haven't seen before. If I'm a kid right out of high school key utilities, are mobilizing to meet this challenge by transportation or affordable daycare prevent actual with no idea what to do, starting in a growing industry training trade allies in the skills needed to implement access. There are so many obstacles that have to be with a respectable entry-level salary gives me a great greater energy efficiency wherever energy is considered in concert with developing a program for growth opportunity. Especially in companies like DNV being used. The ambition is to help candidates find recruitment.” which will support that education with funding. Given sustainable employment in energy while forging a the reality that 40% of those enrolled in college don’t path through which they can serve their communities It’s not hard to imagine a lifelong resident of a city graduate college, it’s a compelling answer for those of origin over the arc of their career. The search for like Newark, New Jersey who might desire to find a job that don’t want to risk being saddled with loans.” both young engineers and tradespeople increasingly like being an energy engineer but lacks the prospect of shares parallels and urgency. To get some insight into future higher education. How does one find their way Chris went deeper into thought as he imagined the the matter we embarked on a conversation with Chris to a meaningful career of creative problem solving, utility perspective, “On the other side of things, my Valle of DNV and Paul Douglas of the JPI group, who while self-funding their education? How do you enter 88-year-old father is living on a PSE&G retirement. share the common objective of engaging entry-level something like a trade or engineering firm at the He joined the U.S. Army at 18, never spent a day in talent in energy efficiency. ground level? college then spent 38 years working for the utility as an electrician. Today, he lives a fantastic quality of life It didn’t take Chris Valle long to touch on the elephant Chris has some insight on this, “We could use a shift with savings and a pension for life.” in the room, “The great resignation [underway] affects in the narrative surrounding college. Nothing against it, us the same way it does other industries – we all are but there's so many opportunities to access entry-level The coming demand for professionals who suffering. To answer the needs of the energy transition clean energy jobs where you can earn $60,000/ can masterfully build and maintain clean energy we’re looking to tap moderately skilled but motivated year or more within a very short period of time. In infrastructure is indeed anticipated to explode. The individuals, all the way up to highly skilled energy companies like ours they will actually help you fund 2021 Energy Efficiency Jobs in America report engineers. How do we get there? One of the things that your education. We all know young people who take estimates a need for an already staggering 2.1 million we're doing is connecting with as many stakeholders a job to secure income right away but then miss out on energy efficiency workers. It also happens to be a as we can, particularly colleges and universities with success in an industry that's growing. There aren’t too space where engineers rub elbows with tradespeople engineering programs. Among my favorites is our many industries that provide that opportunity like clean in the field. While the job of a utility lineworker can collaboration with Drexel University's co-op program, energy does and we can tell that story.” enjoy a long run of stable employment, utilities are wherein we hire Drexel Engineering students to our in need of a growing cross-section of tradespeople. DNV team for six-month intervals.” The world of consulting often evokes an image that This makes the trades appealing as an alternative is sometimes problematic, with busy consultants who to higher education, with both private and public Paul of The JPI Group echoes this sentiment. But he begin as fresh grads from higher education institutions, sector investment expected support a job engine in also notes that “I think there's two perspectives about prepare to move up the ladder, and percolate in the the coming decade, according to Bureau of Labor these programs. One is the corporate perspective, insular world of energy efficiency. However, this Statistics figures. 34 Association of Energy Services Professionals

Paul feels strongly about this as well. Reference 1. Andy Kiersz, Allana Akhtar. “21 High-Paying Careers for People Who Want to Save the Planet - and “We want to build that pipeline early. Can we take high school kids on a tour of DNV's corporate office? Can we take them on a tour with a field tech? A single Also Have Job Security.” Business Insider. Business Insider, April 19, 2022. https://www. opportunity like that can change the course of someone’s life after seeing some real- businessinsider.com/high-demand-renewable-energy-jobs-of-the-future-2019-8. world examples”, he said. 2. “Workforce Development in Illinois - Comed.” Accessed May 6, 2022. https://www.comed.com/ SiteCollectionDocuments/SafetyCommunity/WorkforceDevelopmentFactSheet.pdf. I asked both Chris and Paul what they thought the critical age for igniting the 3. Conway, Katherine M., Claire Wladis, and Alyse C. Hachey. “Time Poverty and Parenthood: Who Has imagination of a future energy professional is. Time for College?” AERA Open, (January 2021). https://doi.org/10.1177/23328584211011608. 4. Busby, Joshua W., Kyri Baker, Morgan D. Bazilian, Alex Q. Gilbert, Emily Grubert, Varun Rai, Joshua D. Chris thought and replied, “How many little kids are out on the beach picking up Rhodes, Sarang Shidore, Caitlin A. Smith, and Michael E. Webber. “Cascading Risks: Understanding the plastic cups so the turtles don't choke on them or talk about breathing clean air when 2021 Winter Blackout in Texas.” Energy they grow up? Those are the kids that we want in our industry, the socially conscious, 5. Research & Social Science. Elsevier, June 2, 2021. https://www.sciencedirect.com/science/article/ socially aware kinds of people.” pii/S2214629621001997. 6. Person, and Megan Rowling. “Renewable Energy Jobs Grew Globally in 2020 despite COVID-19 My impulse was to quiz him on whether he thought his company’s posture on the Crisis.” Reuters. Thomson Reuters, October 21, 2021. https://www.reuters.com/business/cop/ emerging tech side of things such as battery storage, renewables, and offshore wind renewable-energy-jobs-grew-globally-2020-despite-covid-19-crisis-2021-10-21/#:~:text=In%20 served as that magnet for future talent. an%20annual%20report%20on,11.5%20million%20jobs%20in%202019. 7. “Student Debt Viewed as Major Problem; Financial Considerations Important Factor for Most He answered, “I do, because those are highly visible things. I mean, let's face Millennials When Considering Whether to Pursue College.” The Institute of Politics at Harvard it, energy efficiency is the blocking and tackling of the energy transition. We're like University. Accessed May 6, 2022. https://iop.harvard.edu/student-debt-viewed-major-problem- football linemen. I challenge you to name seven linemen in the NFL; likely you can’t. financial-considerations-important-factor-most-millennials-when. But people can name four quarterbacks, probably all 32. There are those attractive 8. Hanson, Melanie, and Fact Checked. “College Dropout Rate [2022]: By Year + Demographics.” aspects of the clean energy industry but it all has to work in concert. I would argue Education Data Initiative, November 22, 2021. https://educationdata.org/college-dropout-rates. that energy efficiency teams probably offer more opportunities for entry-level roles 9. “About the Utilities Sector.” U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics. Accessed than other areas of work.” May 13, 2022. https://www.bls.gov/iag/tgs/iag22.html Paul echoed the sentiment but mused, “Chris mentioned socially conscious. If About the author you're saving the Earth and making it better for generations to come - that message is big, but it has to be grounded by the ability to earn a living. You remember they had Gian-Gabriel Masoni Dobles the blackouts in Texas? There was a picture I saw from one side of a bridge facing a low-income community on the other side of town. The lights were off on the other side Gian-Gabriel is a Field Marketing Manager at DNV. He of the bridge. You want to have lights on both sides. That’s the narrative of the impact leverages his experience in digital marketing to enhance you can have in your diversity hiring. Socially aware young kids want to do something understanding of the energy transition across DNV's to help the world. It’s up to us to say this is the way you can do it and make money.” many areas of work in North America and beyond. His experience in corporate storytelling combined with Chris agreed. “That’s the important distinction between a job and a career. Some a sharp understanding of marketing technology has people have jobs, whereas the staff that drive our energy efficiency programs are culminated in a dynamic career across industries such as building careers.” robotics, startup ventures and more. www.aesp.org | second quarter 2022 35

Learning to Sell Energy Solutions More Effectively By Mark Jewell Any keen observer of the utility sector More and more utilities are realizing that they have a better chance of meeting could identify more than a half-dozen aggressive goals – and better monetizing their customer bases – if they make major trends that are currently upending cross-selling and up-serving as many customers as possible a no-exceptions best the market, each one introducing a blend practice. Doing so also prevents interlopers from selling those customers offerings of chaos and opportunity: that the utility could and should have sold them. Properly executed, cross-selling and up-serving yields not only larger shares of customer mindshare and wallet, but Increased scrutiny from regulators, investors, and customers in the areas of also higher customer satisfaction scores. emissions and renewables. Growing concerns about reliability. More widespread interest in hardware and software that enable a decentralized grid. The need to On a very related note, some utilities are now beginning to connect the dots begin pivoting from energy efficiency to demand response. A burgeoning electric between their Customer Contact Center and successfully executing a cross-selling vehicle market, which could allow a utility to sell not only more electrons, but also or up-serving agenda. Minimizing the duration of the average inbound customer the charging stations themselves. Increased interest in moving away from delivered service call has long been a goal. However, utilities are now realizing that keeping fuels, such as oil and natural gas. The need to do a better job serving hard-to-reach that customer on the line for an extra minute or two affords the opportunity to ask customers, such as small and medium-sized businesses and customers who would a couple qualifying questions that could spark the customer’s interest in efficiency, be eligible for income-qualified programs. And there are others... demand response, electrification, or other value-added offerings. It’s been said that the typical customer looks at their utility bill less than six minutes a year. It Clearly, utilities need to develop and execute new business models to address only makes sense to train Customer Contact Center staff to mention other energy- the challenges they’re currently facing. The quest for viable value-added products related initiatives while the customer happens to be focused on their bill and calling and services continues to be a big part of that equation. Of course, as utilities for assistance. think of new ways to make money and how those initiatives could be deployed, maintaining – and ideally increasing – customer satisfaction remains top-of-mind. Common denomina ors Bes prac ices in adap a ion There are two common denominators that determine an energy professional’s likelihood of prevailing amidst the chaos and opportunity referenced above: 1) Several themes emerge as we examine how utilities are beginning to address the ability to identify the right decision-makers and influencers and then attract and these and similar challenges in the marketplace. retain their attention; and 2) a genuine sense of business acumen, including how each customer generates their revenue and profit. Many utilities have started assigning their account reps to specific customer segments, like manufacturing, retail, commercial real estate, etc. Reps are So, you’re probably thinking, “How skilled are my own people when it comes responsible for knowing the jargon and yardsticks of their respective segments. to those two common denominators of success?” Ideally, they learn to reframe the benefits of energy solutions so they can be measured with the yardsticks that each customer is already using to measure Face it, most energy professionals are the epitome of “accidental salespeople.” success. Examples include reduced cost of goods sold or increased throughput for If you had asked them at the dinner table at age 11, “What would you like to be a manufacturer; higher sales per square foot for a retailer; or better tenant retention when you grow up?” they would not have said “I want to be in sales!” Yet here they and attraction in an income-producing office building. are. The success of their organizations depends on their ability to identify targets, present a compelling value proposition, and be genuinely persuasive – three of the Other utilities have come to realize that they need to engage customers most important attributes of an effective sales professional. beyond their key accounts if they hope to meet aggressive new program goals. Electrification and EV charging station deployment are examples of initiatives For the longest time, utilities considered “sell” to be a “four-letter word” – well it that require educating and motivating utility customers of all shapes and sizes. is, but not that kind of four-letter word! Utilities have long focused on being reactive Utilities have powerful incentives to do so. In many jurisdictions, regulators have rather than proactive. They’ve focused on customer service, not selling. This “non- created performance bonuses tied to meeting aggressive new goals. Replacing sales” posture worked as long as the utility remained an unchallenged monopoly a large quantity of delivered fuels with heat pumps, for example, could generate selling a commodity that everyone needed. However, for years now, being passive tremendous incremental profitability for a utility’s shareholders in a jurisdiction and reactive has cost utilities countless opportunities to create deeper customer where performance incentives support the region’s commitment to electrification. relationships... and to generate greater revenue and margin. 36 Association of Energy Services Professionals And what about the “business acumen” part of the equation? How do energy professionals – both utility staff and other market actors who support them – fare in this regard? Frankly, not well on average. Keep in mind that there are at least two dimensions to business acumen when it comes to delivering compelling reasons a customer should invest in an energy solution.

The first dimension has to do with which benefits are cited when making the The market challenges cited herein are real. The overwhelming majority of case for approval. Most energy professionals focus on utility-cost financial benefits energy professionals – utility staff, program implementers, trade allies, and even alone. Monthly utility savings. Rebates. Incentives. internal champions within customer organizations – are woefully unprepared to identify the best targets, capture and retain their attention, and present compelling But what about non-utility-cost financial benefits? Those are benefits that can value propositions that can win project approvals. be quantified and monetized but appear on the Profit and Loss Statement on lines other than “Utilities.” These benefits vary by customer segment and energy The good news is that all of those energy professionals can be taught to measure installed. Examples include increased employee productivity, decreased embrace their inner sales professional. In fact, since 2012, Selling Energy has cost of goods sold, and increased tenant attraction and retention. trained more than 11,000 energy professionals to do just that. More than 200 North American utilities have leveraged our unique brand of energy-solutions- And what about non-financial benefits, such as increased safety or an focused sales training to meet their respective program goals. environmental accolade like an ENERGY STAR® Label? Keep in mind that many seemingly non-financial benefits also support non-utility-cost financial benefits if Perhaps the best news of all is that AESP recently partnered with Selling Energy you make the effort to “follow the money.” Increased safety could reduce workers’ to add a comprehensive curriculum of energy-solutions-oriented sales training to compensation premiums, litigation expenses, etc. An ENERGY STAR® Label on the AESP Institute’s repertoire of courses – all of which qualify for CEUs and PDHs a commercial office building has been proven to drive increased occupancy, for anyone who needs those credentials. increased rent per square foot, and increased asset value, all of which are distinctly financial benefits for the owner of an income-producing property. The two flagships of Selling Energy’s curricula are Selling in 6™ and Segment Guides™, both exceptional resources for energy professionals interested in The second dimension of business acumen is knowing enough about a customer becoming more skilled at identifying and convincing customers to embrace energy to be able to state how hard they had to work last year to see the same bottom-line solutions. impact that an expense-reducing energy project would generate. Let’s assume a medium-sized grocery store generates $5,000,000 in annual revenue at a profit SELLING IN features six-minute lessons accessible via smartphone, margin of 3%. You could say that your proposed $30,000 retrofit would save $10,000 per year in energy and maintenance in the hopes that a 3-year payback tablet, or any other internet-connected device. Lessons can be viewed or simply would be sufficiently compelling to win project approval. But what if you divided listened to. They are keyword-searchable, can be assembled into custom playlists, the $10,000 in savings by their 3% profit margin, which would highlight the fact and can be reviewed as often as needed. Weekly viewing reports, monthly two- that last year, they had to sell $333,333 in groceries at their 3% profit margin to hour coaching sessions, the ability to recycle a license, and the many other benefits add $10,000 to their bottom line. That’s about 100,000 boxes of Cheerios or included with each license make it a \"sales manager's dream.\" Experience proves 10,000 cases. Assuming 60 cases per pallet and 20 pallets per tractor trailer, that this training is effective for veteran salespeople, new hires, and everyone in that’s just over 8 tractor trailers full of Cheerios they have to sell in a typical year between AND that it works for both energy and non-energy-related solutions. to see $10,000 in profit! Which selling approach is more visually compelling? A Selling in 6 comes in several editions: Commercial and Industrial, Residential, and three-year payback or the equivalent of selling 8 tractor trailers full of Cheerios? Internal Champion. Custom playlists of Selling in 6™ lessons are also available for Customer Contact Center staff and other non-traditional sales roles. Consider the challenges at the top of this article and the solutions that utilities might introduce as they cross-sell and up-serve their customers. Selling solar, wind SEGMENT GUIDES offers insights into 24 key market segments or geothermal. Selling “green electricity” sourced elsewhere. Selling demand response. Selling EV charging stations. Selling electrification solutions. Selling (with more segments coming soon): the jargon, yardsticks, and hot buttons that energy solutions to small and medium-sized businesses. Selling income-qualified allow your team to approach prospects in each of these segments as peers rather customers solutions that fit their use profiles. than salespeople. All of these segments have recently been updated to reflect COVID-19 and recession impacts. What word stands out in the previous paragraph? SELLING. Energy-related products, services and programs all require effective selling. Professional sales skills For more information about Selling Energy’s offerings and how our new make you more successful at advancing any energy-related initiative, regardless of partnership with the AESP Institute can help your team meet your program goals, your role in the process. You need to think of yourself as a sales professional even please contact me at [email protected] . if your job title does not include the word “sales.” About the author The utility industry is full of energy professionals who have spent their careers in engineering, product management, contracting, marketing, or other roles where Mark Jewell sales is not the focus. Most would not label themselves as “salespeople,” preferring the moniker of customer service or something similar. Many seem to be allergic to Mark Jewell is a Wall Street Journal best- the label of “salesperson,” perhaps a consequence of being exposed to so many selling author and two-time Stevie Award pushy salespeople in the past. winner for Sales Training or Education Leader of the Year. His company, Selling Energy, has In fact, even people who would describe themselves as salespeople today have appeared on Selling Power magazine’s list of likely received less than three days of sales training in their entire careers, and most Top 20 Sales Training Firms. Mark has worked of that was probably product knowledge training rather genuine sales training. in the energy industry for the past 28 years Moreover, any genuine sales training they did receive was likely not energy- and has influenced decision-making across solutions-specific. more than three billion square feet of buildings. He has trained over 11,000 energy professionals how to sell their offerings more effectively. Mark received Bottom line, coping with the above-referenced challenges – and then leveraging his Bachelor of Science degree in Economics from The Wharton School at the them to grow revenue, profit, and market share – will require utilities and all the University of Pennsylvania. market actors who support them to “embrace their inner sales professional.” That means learning the values, jargon, and yardsticks of each customer and incorporating those insights into marketing and sales activities. It means knowing how to contact and engage with non-key accounts. It means crafting and delivering concise elevator pitches, one-page narrative proposals, and one-page financial analyses that help attract and retain the attention of not only internal champions, but also all the other decision-makers and influencers whose consent is necessary to win project approvals. It means being able to address (and ideally preemptively neutralize) any of the dozens of typical objections that can delay or prevent approval for even the most worthwhile proposals. www.aesp.org | second quarter 2022 37