ENERGY, DEPARTMENT of

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1 Annual Performance Progress Report (APPR) for Fiscal Year ( ) Original Submission Date: 2013 Finalize Date: 8/29/2013

2 KPM # Approved Key Performance Measures (KPMs) a b c d e a b c ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings; Total Savings. ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: Business Energy Tax Credits. ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savingss: Residential Energy Tax Credits. ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: Small-Scale Energy Loan Program. ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: State Energy Efficiency Design. CUSTOMER SERVICE - Percent of customers rating their satisfaction with the agency's customer service as "good" or "excellent": overall, timeliness, accuracy, helpfulness, expertise, availability of information. APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory deadlines for Energy Facility Siting. APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory deadlines for Energy Incentive Programs. APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory deadlines for Residential Energy Tax Credits.

3 I. EXECUTIVE SUMMARY Agency Mission: The mission of the ODOE is to ensure Oregon has an adequate supply of reliable and affordable energy and is safe from nuclear contamination, by helping Oregonians save energy, develop clean energy resources, promote renewable energy and clean up nuclear waste. Contact: Mary Knight, KPM Coordinator Contact Phone: Alternate: Alternate Phone: Performance Summary Yellow Green Green 22.2% Pending 55.6% Yellow 22.2% Total: 100.0% Pending Green = Target to -5% Yellow = Target -6% to -15% Red = Target > -15% Exception Can not calculate status (zero entered for either Actual or 1. SCOPE OF REPORT Included in this report are the most current performance results for the Oregon Department of Energy s (ODOE) three key performance measures (KPMs). The measures provide information on energy savings, processing timeliness, and customer service results. 2. THE OREGON CONTEXT Page 3 of 26

4 The department s KPMs link to Oregon Benchmark #77: Carbon Dioxide Emissions. 3. PERFORMANCE SUMMARY 1) ENERGY SAVINGS - Progress Made Results trended upward for This is largely due energy incentives activities related to the Biomass Producers and Collectors Tax Credits and the wind-down of the Business Energy Tax Credits.2) CUSTOMER SERVICE - Progress MadeTotal average satisfaction for all service categories is 85.1%. While this is below the target goal of 95%, there was improvement over the prior biennium's survey.3) APPLICATION PROCESSING - Progress Made ODOE s performance targets on the energy facility siting measure are met consistently over time. ODOE s BETC and RETC processing timeliness targets have not been met for several years, however, improvements were seen for 2011.ODOE continues to work on improving the KPMs and is beginning to work on identifying internal measures to help manage workload and progress toward identified outcomes. 4. CHALLENGES The department has undergone significant change in recent years. Looking forward, ODOE anticipates developing a more refined strategic plan and working with LFO and BAM to make improvements to the KPMs. 5. RESOURCES AND EFFICIENCY ODOE s Legislatively Approved Budget includes: $31,477,822 Other Funds $ 36,736,670 Federal Funds $103,606,641 Other Funds Non limited $68,308,598 Other Funds Non limited Debt Service $1 Federal Funds Debt Service $2,088,439 Other Fund Lottery Debt Service $242,218,171 Total All Funds Budget Page 4 of 26

5 KPM #1a ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings; Total 1990 Savings. Goal Oregon Context Data Source Owner Increase energy savings through Department energy conservation and renewable energy programs. Oregon Benchmark 77 (formerly 76): Carbon dioxide (CO2) emissions as a percent of 1990 emissions. Program databases. Mary Knight, KPM Coordinator, Phone: Annual Energy Savings All Programs: Number of Avg Households Powered by Savings and Production Bar is actual, line is target Data is represented by number 1. OUR STRATEGY Energy savings from ODOE s conservation and renewable energy programs reduces Oregon s use of energy and fossil fuels thereby reducing CO 2 emissions. ODOE works with businesses, industries, state and local governments, schools, institutions, homeowners and renters to save energy and protect the Page 5 of 26

6 environment. 2. ABOUT THE TARGETS During the biennium ODOE changed the expression of this measure to energy savings as a number of average households powered by savings. Targets were not set for the biennium because of this change. 3. HOW WE ARE DOING The 2009 Legislature requested that ODOE modified the methodology for this measure to eliminate reporting cumulative energy savings and to consider the life cycle of energy projects. ODOE has converted this to measure annual savings. Historical data was converted to enable data trending.overall the results for 2011 show improvement over 2010 due in large part to increases in the BETC, SELP and the Other category which are attributed to the Biomass Producer and Collector Tax Credit Program. The 2011 Legislature made significant modifications to energy incentives offered by the department (HB 3872) and exempted universities from being required to use State Energy Efficient Design services. These changes will begin to impact energy savings results in HOW WE COMPARE There is no good direct comparator of energy savings; however, the American Council for an Energy Efficient Economy (ACEEE) has proposed a national goal for energy savings. The goal calls for utilities to implement measures that save the equivalent of one percent of the electricity used by their customers each year. ACEEE ranked Oregon 4th of the 50 states in 2009, followed by 3rd in 2010 and again 4th in 2011 on their State Energy Efficiency National Scorecard. Additional savings are realized each year by programs operated by Oregon utilities and other entities. This suggests that ODOE's performance is above that of most states. 5. FACTORS AFFECTING RESULTS In recent years, ODOE s energy conservation and renewable energy programs have expanded, promoting energy efficiency in a wider variety of equipment types and serving growing numbers of businesses, homeowners, government agencies and institutions. In 2007, the legislature expanded the BETC program to offer a higher level of incentive for renewable energy projects, attracting a growing numbers of businesses, government agencies and institutions. In 2009 and 2010, the legislature made further modifications to the BETC program that are expected to reduce the overall size of the BETC program. HB3672 (2011) sunsets the BETC program, modifies the RETC program, and introduced three new Energy Incentive Programs that are capped. The impact to energy savings Page 6 of 26

7 from all these changes is unknown, although, the department anticipates flat to declining energy savings in future biennia. 6. WHAT NEEDS TO BE DONE Increasing the caps on energy incentives or introducing new incentives would likely increase energy savings. Exploring new methods for tracking energy savings from activities that emerge as the agency pursues new and innovative ways to advance Oregon s energy priorities may also help ensure continued growth in energy savings results. 7. ABOUT THE DATA The number of households powered by the annual energy savings is based on the average annual energy conversion factor of 76.1 million BTU s per household per year, which is sourced from the U.S. Energy Information Administration website. An update was recently done by USDOE that changed the factor from 71.8 to 76.1 million BTU s per household. Historical data was modified to allow for trending.energy savings data is only an estimate and not a representation of actual savings earned. Estimates are based on specific types of equipment, by fuel type, and in many cases on savings estimates for specific brand and model number combinations for equipment. Some data used is drawn from self disclosure of applicants. When new testing data is available from equipment manufacturers, the agency adjusts its energy savings estimates accordingly. The SELP data was restated using fully disbursed year of the loan instead of the previous methodology of loan closing year. This was done to maintain consistent reporting of energy savings as loans did not necessarily report any savings until fully disbursed. The reporting cycle for this measure is a calendar year. Page 7 of 26

8 KPM #1b ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: Business 1990 Energy Tax Credits. Goal Oregon Context Data Source Owner Increase energy savings through Department energy conservation and renewable energy programs. Oregon Benchmark 77 (formerly 76): Carbon dioxide (CO2) emissions as a percent of 1990 emissions. Program databases. Mary Knight, KPM Coordinator, Phone: Annual Energy Savings for BETC: Number of Avg Households Powered by Savings and Production Bar is actual, line is target Data is represented by number 1. OUR STRATEGY for summary of strategy and changes to this measure. Page 8 of 26

9 2. ABOUT THE TARGETS 3. HOW WE ARE DOING 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 9 of 26

10 KPM #1c ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savingss: 1990 Residential Energy Tax Credits. Goal Oregon Context Data Source Owner Increase energy savings through Department energy conservation and renewable energy programs. Oregon Benchmark 77 (formerly 76): Carbon dioxide (CO2) emissions as a percent of 1990 emissions. Residential Energy Tax Credit (RETC) Program databases. Mary Knight, KPM Coordinator, Phone: Annual Energy Savings for RETC: Number of Avg Households Powered by Savings and Production Bar is actual, line is target Data is represented by number 1. OUR STRATEGY for summary of strategy and changes to this measure. Page 10 of 26

11 2. ABOUT THE TARGETS 3. HOW WE ARE DOING 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 11 of 26

12 KPM #1d ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: 1990 Small-Scale Energy Loan Program. Goal Oregon Context Data Source Owner Increase energy savings through Department energy conservation and renewable energy programs. Oregon Benchmark 77 (formerly 76): Carbon dioxide (CO2) emissions as a percent of 1990 emissions. SELP database. Mary Knight, KPM Coordinator, Phone: Annual Energy Savingsfor SELP: Number of Avg Households Powered by Savings and Production Bar is actual, line is target Data is represented by number 1. OUR STRATEGY for summary of strategy and changes to this measure. Page 12 of 26

13 2. ABOUT THE TARGETS 3. HOW WE ARE DOING This SELP measure is restated to count energy savings based on fully disbursed year of the loan vs. the previous methodology that was using loan closed year. This method is believed to be a more accurate measure. 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 13 of 26

14 KPM #1e ENERGY SAVINGS - Annual energy savings in number of households that could be powered as a result of energy savings: State 1990 Energy Efficiency Design. Goal Oregon Context Data Source Owner Increase energy savings through Department energy conservation and renewable energy programs. Oregon Benchmark 77 (formerly 76): Carbon dioxide (CO2) emissions as a percent of 1990 emissions. SEED Program database and tracking files. Mary Knight, KPM Coordinator, Phone: Annual Energy Savings for SEED: Number of Avg Households Powered by Savings and Production Bar is actual, line is target Data is represented by number 1. OUR STRATEGY for summary of strategy and changes to this measure. Page 14 of 26

15 2. ABOUT THE TARGETS 3. HOW WE ARE DOING 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 15 of 26

16 KPM #2 CUSTOMER SERVICE - Percent of customers rating their satisfaction with the agency's customer service as "good" or "excellent": 1997 overall, timeliness, accuracy, helpfulness, expertise, availability of information. Goal Oregon Context Data Source Owner Provide customers with a high degree of satisfaction with ODOE conservation and renewable resource programs. ODOE Mission. Survey completed by the Department. Mary Knight, KPM Coordinator, Phone: Percent rating service good or excellent for all ODOE programs Target 20 0 Accuracy Availability of Information Expertise Helpfulness Overall Timeliness 1. OUR STRATEGY ODOE has committed to surveying external customers once a biennium using the standard customer service questions and process guidelines. The most recent survey expanded the customer base to include all long-standing ODOE programs. 2. ABOUT THE TARGETS Page 16 of 26

17 The 2009 Legislature set the target at 95 percent for all service categories. ODOE requests the continuation of this target for the biennium. 3. HOW WE ARE DOING ODOE conducted an on-line survey in Results represent the sum of all customer feedback without any weighting of the data. ODOE performed most favorably in the service category of accuracy, and least favorably related to availability of information. Our average satisfaction rate for all service categories is 85.1%. While this is below our target goal of 95%, there was an incremental improvement over prior year's survey. 4. HOW WE COMPARE ODOE has not identified an entity with whom to draw performance comparisons, other than using our own historical data. 5. FACTORS AFFECTING RESULTS ODOE has experiences a large amount of employee turnover and changes in leadership over the last two biennia. It can be challenging to provide consistent, high quality customer service when staff turnover rates are high. 6. WHAT NEEDS TO BE DONE The newly named permanent ODOE Director considers customer service a important agency priority. As turnover stabilizes and improvement initiative take hold ODOE anticipates that performance results for customer service will be positively impacted. 7. ABOUT THE DATA The survey is comprised of results from individual surveys conducted in each of the department s four divisions that provide services to energy customers and stakeholders. The survey is conducted once a biennium. Page 17 of 26

18 KPM #3a APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory deadlines for 2006 Energy Facility Siting. Goal Oregon Context Data Source Owner Provide timely processing of site certificates and tax credits. ODOE Mission. Energy Facility Siting files Mary Knight, KPM Coordinator, Phone: Energy Facility Siting -- percentage of applications notified of completion within 60 days Bar is actual, line is target Data is represented by percent 1. OUR STRATEGY ODOE monitors application processing timeliness for Energy Facility Sitings and energy tax credits to identify delays and make improvements to turnaround times. This measure contains three parts:a) Energy Facility Siting, percent of applications for which ODOE notifies applicants within 60 days of receiving their Page 18 of 26

19 application for a new energy facility.b) BETC, percent of applications approved or denied within 120 days of the receipt of a complete application for a preliminary certificate.c) RETC, percent of applications approved or denied within 60 days of the receipt of a complete application for a final certificate.the reporting on this measure will be updated to reflect the new Energy Incentive Programs as defined by HB 3672 beginning in 2013, the first year where a full year s worth of data is available. 2. ABOUT THE TARGETS Targets are set at 100 percent for each of the measure subcomponents. ODOE requests the continuation of this target for the biennium. 3. HOW WE ARE DOING ODOE s performance targets on the energy facility siting measure are met consistently over time. ODOE s BETC and RETC processing timeliness targets have not been met for several years, however, improvements are seen for Increased growth in the BETC program led to a processing backlog; significant effort was made during the biennium to confront this issue. RETC applications were previously mostly processed manually with the bulk of the applications coming to the Department between December and April 15. Efforts were made to streamline RETC application processing and encourage more utilization of the Department s web-based application processing tool. Actions taken have brought the agency performance closer to our targets. 4. HOW WE COMPARE ODOE has not identified any external comparators; comparisons are made against historical performance results. 5. FACTORS AFFECTING RESULTS HB 3672 which made changes to the BETC and RETC programs have impacted timeliness. As the BETC program comes to a close and the new incentives are fully implements, ODOE anticipates meeting the timeliness targets. 6. WHAT NEEDS TO BE DONE The department would like to invest in greater automation of energy incentive application processing; however, these investments are difficult to justify given current sunset provisions. Page 19 of 26

20 7. ABOUT THE DATA The reporting cycle for this measure is a calendar year. The data for the energy facility siting measures represents actual processing time data for all applications received during the reporting period. The BETC and RETC measures are likewise based on actual data. ODOE enters the date received and date approved for all tax credit applications in its databases and pulls reports that compare actual processing timeframes to targets Page 20 of 26

21 KPM #3b APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory 2006 deadlines for Energy Incentive Programs. Goal Oregon Context Data Source Owner Provide timely processing of Business Tax Credits ODOE Mission. Business Energy Tax Credit database. Mary Knight, KPM Coordinator, Phone: Business Energy Tax Credits (BETCs) : Percent of Applications Processed within 120 Days Bar is actual, line is target Data is represented by percent 1. OUR STRATEGY Page 21 of 26

22 2. ABOUT THE TARGETS 3. HOW WE ARE DOING 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 22 of 26

23 KPM #3c APPLICATION PROCESSING - Percent of applications reviewed and approved within administrative or statutory deadlines for 2006 Residential Energy Tax Credits. Goal Oregon Context Data Source Owner Provide timely processing of site certificates and tax credits. ODOE Mission. Residential Energy Tax Credit Appliance database. Mary Knight, KPM Coordinator, Phone: Residential Energy Tax Credit (RETC) - Percent of applications processed within 60 days Bar is actual, line is target Data is represented by percent 1. OUR STRATEGY Page 23 of 26

24 2. ABOUT THE TARGETS 3. HOW WE ARE DOING 4. HOW WE COMPARE 5. FACTORS AFFECTING RESULTS 6. WHAT NEEDS TO BE DONE 7. ABOUT THE DATA Page 24 of 26

25 Agency Mission: III. USING PERFORMANCE DATA The mission of the ODOE is to ensure Oregon has an adequate supply of reliable and affordable energy and is safe from nuclear contamination, by helping Oregonians save energy, develop clean energy resources, promote renewable energy and clean up nuclear waste. Contact: Mary Knight, KPM Coordinator Contact Phone: Alternate: Alternate Phone: The following questions indicate how performance measures and data are used for management and accountability purposes. 1. INCLUSIVITY * Staff : ODOE s process is to involve staff, key stakeholders and elected officials in efforts to improve the Department s KPMs. * Elected Officials: Legislators receive performance measure reports during budget hearings, and upon request * Stakeholders: ODOE information is available through the agency website: * Citizens: ODOE continues to publish its KPM report on its website and deliver the report to citizens upon request. 2 MANAGING FOR RESULTS Performance measures are a mix of high-level outcomes and process measures. Data from the energy savings KPM is also used in the agency s Biennial Energy Plan and shared with external stakeholders.. 3 STAFF TRAINING In the past, training has been provided. As the Department moves into the next phase of KPM improvements and internal measurement development, additional training for staff will be conducted. 4 COMMUNICATING RESULTS * Staff : The Annual Performance Progress Report is the primary vehicle used to communicate performance. The annual report is posted on ODOEs web page: * Elected Officials: External communication of the KPMs has historically been made available via the Department s web site at: The Department shares the information with the Department of Administrative Services and legislators via the budget development process. * Stakeholders: External communication of the KPMs has historically been made available via the Department s Page 25 of 26

26 web site at: The Department shares the information with the Department of Administrative Services and legislators via the budget development process. * Citizens: External communication of the KPMs has historically been made available via the Department s web site at: The Department shares the information with the Department of Administrative Services and legislators via the budget development process. Page 26 of 26

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