Iowa Energy Efficiency Assessment of Energy Efficiency Potential Request for Proposals Date of Issuance: April 22, 2016 1
Project Background The Iowa Utility Association (IUA) is a state trade association that represents the interests of the investor-owned utilities (IOU) in Iowa and acts as an agent for the IOUs to coordinate a joint assessment of potential for natural gas and electricity energy and electricity capacity savings in Iowa required to develop the 2019-2023 Iowa energy efficiency plans. Two of the member utilities are subject to electric rate regulation by the Iowa Utilities Board (IUB) and all three members are subject to natural gas rate regulation. The participating IOUs are as follows: MidAmerican Energy Company Electric and Gas - MidAmerican is the largest utility and provides service to more than 750,000 electric customers and 700,000 natural gas customers in a 10,600 square mile area from Sioux Falls, SD to the Quad Cities area of Iowa and Illinois. Interstate Power and Light Electric and Gas - Interstate Power and Light is a subsidiary of Alliant Energy that provides utility service to more than one million customers in Iowa and Wisconsin. IPL serves approximately 485,000 electric customers and 225,000 natural gas customers in Iowa. Black Hills Energy Gas Only - Black Hills provides utility service to more than 750,000 customers in Iowa, Colorado, Kansas, Missouri, and Nebraska. Black Hills provides natural gas service to approximately 150,000 customers in Iowa. Chapter 35 of the Iowa Administrative Code (199 IAC 35) sets forth the Board rules to implement legislation enacted in 1990 and modified in 1996 and 2010 requiring the IOUs to provide energy efficiency programs for their customers, a copy of which is provided in Appendix A. These rules require that a joint assessment of the potential for energy and capacity savings from energy efficiency programs be conducted to inform the development of the IOUs five-year energy efficiency plans. The IOUs through the IUA issue this Request for Proposal (RFP) to conduct an assessment of potential for the new plans. Six assessments of potential studies have been previously conducted in Iowa. They are described as follows: 1989: Morgan Systems of Madison, WI conducted a study for the IUB to establish a state baseline for energy efficiency. 1990: Barakat and Chamberlain of Oakland, CA conducted a study for the IUA and its member utilities that was included in the individual plan proposals of the IUA submitted to the IUB in 1991. 2
2001: Oak Ridge National Laboratory contracted with The Iowa Energy Center to extract Iowa data from a recently completed Oak Ridge Regional Energy Efficiency Potential Study. The study did not produce sufficient data to be useful and the utilities issued an RFP. 2001: Global Energy LLC and Quantec LLC partnered to conduct another study for the IUA and its member companies. This study was submitted with the individual plan proposals of IUA members to the IUB in 2002 and 2003. 2007: Quantec LLC (now Cadmus Group Inc.) with its partners (Nexant, Summit Blue Consulting, Brett/Makila and A-TEC) conducted an Assessment of Energy and Capacity Savings Potential in Iowa. This study was included with the individual utility energy efficiency plan proposals submitted to the IUB. 2012: The Cadmus Group conducted an Assessment of Energy and Capacity Savings Potential in Iowa. This study was included with the individual utility energy efficiency plan proposals submitted to the IUB. Proposal Schedule RFP Issued... April 22, 2016 Notice of Intent to Bid Response... April 29, 2016 Bidder Questions... May 6, 2016 Response to Bidder Questions...May 13, 2016 Proposals Due...June 3, 2016 Finalist Interviews... week of July 11, 2016 Vendor Selection... week of August 1, 2016 Anticipated Contractor Start... September 1, 2016 Assessment Draft 1...May 31, 2017 Final Assessment Completion Date... July 31, 2017 Objective The objective of this RFP is to solicit a joint assessment of potential for natural gas and electricity energy and electricity capacity savings in the Iowa service areas served by the IOUs. This joint study is limited to those aspects of the assessment which can be conducted for all three IOUs in a combined fashion. 3
Statement of Work 1. Required Tasks The IOUs seek an assessment of potential as defined in the Iowa Administrative Code (199 IAC 35.8(1) a - d ) that includes the following: - Base case (part 35.8(1) a ) - Measure survey (part 35.8(1) b ) - Qualitative screening - Phase-in technical potential - Economic potential (part 35.8(1) c ) The will supply services required to satisfy the requirements in 199 IAC 35.8(1) a - d that are administered by the IUB. These requirements are included in the attached Attachment A. The IOUs have reviewed these IAC requirements and have determined which of the required information should be developed as part of the joint study requested in this RFP and which should be developed separately by each IOU. The joint requirements are also included in Appendix A. In order to inform the IOU s assessment and to provide a realistic upper bound to potential savings from cost effective programs, the will develop at least one potential savings scenario meant to represent the achievable potential with aggressive implementation of energy efficiency program best practices. This scenario could include financing options, implementation of programs and policies from states with higher achieved savings, or other realistic program modifications. The will be clear about the assumptions that inform this model and the impact of each assumption on the overall savings estimate. The should identify separately in their proposal the cost of analyzing this scenario. The shall also study how financing options or lack thereof may affect the achievable potential and provide alternative financing approaches to improve achievable potential. The should identify separately in their proposal the cost of analyzing these market scenarios. The shall be prepared to defend the Assessment as necessary in any regulatory proceedings that may ensue relating to the assessment. The shall identify rates for this service in the bid. In addition to the above, the will propose a research strategy for determining and implementing net-to-gross research as ordered in the Boards Net-to-Gross Order (Order issued on April 8, 2016 and according to the recommendations in the Iowa Net-to-Gross Report prepared for the IOUs by Navigant. The purpose of the plan is twofold: To specifically identify which energy efficiency measures are appropriate for Net-to- Gross research as part of the Assessment of Potential. To help inform the NTG Oversight Committee and the IOUs as to the appropriate level of NTG research to be conducted in the future given the recommendations in the Report. 4
The research plan should identify the type of research that should be conducted for each measure as well as a timeline and budget necessary for completion of the research. The may offer additional advice or proposals concerning the need for and use of primary or secondary research relating to net-to-gross consistent with the recommendations of the Report and Order. The Report and Order are provided as Appendix B. 2. Measures Requiring Analysis or Research The will explicitly evaluate the potential for capacity and energy savings from all commercially available natural gas and electric energy efficiency measures (as defined in part 35.2 in Appendix A), including but not limited to the measures listed in Table 1 below. The market segments by which the will analyze and report each customer class are provided in Section 3. The will clearly specify its underlying assumptions with respect to the implementation of laws, codes and standards for all types of lighting equipment (indoor, outdoor, area, and street), all types of equipment and all types of appliances. The will clearly specify its underlying assumptions with respect to compliance with building laws, codes and standards in the new construction market segment. Additionally, the will incorporate any relevant changes being adopted in Iowa regarding the International Energy Conservation Code that is revised every three years and ASHRAE 90.1 that is revised every three years. The consultant will also specify any underlying assumptions and how it will model early retirement measures, changes in future baselines, and future improvements in efficient measures. The consultant will specify how it addresses not yet fully commercialized emerging technologies, custom measures, and potential impacts of the implementation of the Clean Power Plan. TABLE 1 MEASURES REQUIRING ANALYSIS OR RESEARCH Note: should use the Iowa Technical Reference Manual (TRM) characterizations as the default characterizations unless the believes they are out of date, incorrect or not sufficiently granular. Number Measure (Residential and nonresidential unless otherwise noted) 1 Central air conditioning in residential family dwellings, <65 MBtuh Minimum Data Needs Saturation and market share by SEER level 2 Furnaces, < 255 MBtuh Saturation and market share by efficiency level Primary Research Required 5
3 Geothermal heat pump Saturation and market share by efficiency level 4 Air source heat pump Saturation and market share by efficiency level 5 Add on heat pump Saturation and market share by efficiency level 6 Boilers (1) Saturation and market share by efficiency level 7 Plug-in space heaters As recommended by 8 Programmable thermostats 9 Building energy management systems (1) Saturation and market share and settings Saturation and market share and settings 10 Occupancy sensors Saturation and market share 11 Waste heat recovery Saturation and market share, by type, by size 12 Chillers (1) As recommended by 13 Clothes washers Saturation and market share, by model size and type 14 Water heating Saturation and market share, by model size and type 15 Clothes dryers Saturation and market share, by model size and type 16 Drain water heat recovery As recommended by 17 Integrated space and water heating 18 Compact fluorescent lamps As recommended by Number installed by wattage, saturation, and market share 19 T8 lighting Number installed by wattage category 20 High bay lighting Number installed by wattage category 6
21 LED lighting Saturation and market share 23 Windows As recommended by 24 Traditional Insulation By R-value, type, and building location (attic, wall, basement, etc.) 25 Non-Traditional Insulation By R-value, type, and building location (attic, wall, basement, etc.) 26 Motors (1) As recommended by 27 Adjustable speed drives (1) As recommended by 28 Refrigerators As recommended by 29 Commercial kitchen equipment (1) 30 Compressed air equipment (1) 31 Steam Trap Replacement or Repair (1) As recommended by As recommended by As recommended by (1) Nonresidential only The may use either primary or secondary research in developing the assessment of energy efficiency potential for the above measures except as indicated in column 4. It is not expected that primary research will include direct surveys of program participants or other program actors, but the will have access to any survey work done by the IOUs through their normal EM&V process. In addition to the above, The is also expected to conduct primary research in Iowa to determine the common practices in Iowa and the appropriate baselines for energy efficiency measures given current market conditions in Iowa for the following and programs: Programs: Commercial New Construction Upstream Lighting (primarily LED and opportunities for fixtures) Industrial Partners/Custom Rebates Residential Behavioral Programs Residential New Construction Potential midstream program opportunities (distributor programs for lighting and equipment) 7
Demand response measures include residential direct load control of central air conditioners and electric water heaters and nonresidential interruptible (curtailment) programs. The consultant will estimate the potential for savings from expansion of these existing programs or development of new programs under a reasonable and clearly identified set of assumptions with respect to federal and state laws and regional transmission organizational structures. To the extent possible, the primary and secondary research conducted should serve multiple purposes. As detailed previously in this RFP, the should follow the recommendations in the Iowa Net-to-Gross Report (Report) prepared by Navigant for the IOUs and the Board s Net-to-Gross Order (Order) issued on April 8, 2016. If there are areas where primary research is requested and the feels secondary research would be an adequate replacement, the may identify those areas and the difference in cost between those approaches. Additionally, the is expected to provide a timetable for completion of primary and secondary research projects. If necessary, the should provide a timeline for research necessary for completion of the assessment of potential and net-to-gross research separately. In calculation of the assessment, the should use the Iowa TRM as a default starting point for analysis and for interaction with primary research. The consultant is not expected to complete an evaluation of the values and assumptions used in the development of the Iowa TRM measure characterizations. The is expected to itemize expected expenses for any primary research needed to conduct the assessment as described in this RFP. The may offer additional advice or proposals concerning the need for and use of primary research in Iowa to prepare the assessment. The Net-to-Gross Oversight Committee will have an oversight role for any primary or secondary research specifically conducted to fulfill the recommendations of the Report and/or Order. This includes an opportunity to review and comment on any research plan before that research is conducted. 3. Market Segments The will recommend the market segments or classes to be used in the Assessment, as specified below. At a minimum, breakdowns will be provided for: Gas versus electric Residential versus commercial versus industrial where agriculture equals commercial New construction versus existing construction The residential classes will be further segmented into the following three mutually exclusive segments: Single-family 8
Multi-family Low-income 4. Documentation The shall provide electronic copies of all work papers and spreadsheets related to the assessment in electronic format in addition to the final hard copy and electronic report. The presentation of data shall accommodate after the fact analysis by IUB Staff, the Office of Consumer Advocate s office, and any intervening parties. The presentation of data shall allow the IOUs and other parties to conduct sensitivity analyses and alternative scenarios based on changes in major assumptions. The will be expected to provide training for the IOUs and other parties on use of the work papers and spreadsheets. Final contract payment will not be made until the work papers are provided and the training has been conducted. The shall provide the IOUs with the data they are required to provide with their plan filings pursuant to 199 IAC 35.6(2). 5. Contract Management The contract for this work will be administered by the Iowa Utility Association, on behalf of the participating utilities. Proposal Requirements Proposals must be submitted in the following format. Elaborate proposals or covers are discouraged. Resumes, corporate qualifications, examples of prior work and other supporting materials may be submitted as attachments, but total proposal length should not exceed 25 pages, not including attachments and appendices. Bidders must submit the following: Cover page Table of Contents Introduction Briefly describe your understanding of the program and scope of work as outlined in the RFP. Identify your understanding of the project s goals and objectives and describe your approach to achieve them. Describe your organization or team, the role of each of the parties, and your management plan. Briefly describe your unique qualifications for successfully completing the project, and why you should be selected for this project. 9
Conflict - Describe any current or potential conflicts you, your company and any subcontracts may have with the engagement. Describe any relationships you have with the IOUs, the Office of Consumer Advocate, the Environmental Law and Policy Center and/or the Iowa Environmental Council. Also include any work you are currently performing, have been contracted to perform, or are bidding on to be performed in Iowa. Awarding of the contract for this RFP to a may preclude that from participating in the development of the IOUs 2019-2023 energy efficiency plans or from other work related to the 2019-2023 energy efficiency plans. Statement of Work Present your overall approach to accomplish the work outlined in the RFP. You should describe the key components of your package of services and how they fit together to achieve the objectives contained herein. Propose the targets you expect to achieve. In this section, identify any proposed changes, additions or enhancements to the scope outlined in the RFP. Provide a detailed statement of work by task. Activities, tasks, and sub- tasks should be arranged in a logical order. Each activity or task should be identified, indicating who will perform it, how it will be performed and its anticipated result(s). Identify deliverables and key milestones. Provide a schedule for completing each identified task, activity and sub- task, outlining anticipated start and completion dates. Staffing and Management Plan Describe how you will organize and manage the project. Identify the Project Manager and other key team members that will be assigned. Provide a clear description of the roles and responsibilities of each person, and indicate the approximate percentage of time each will devote to the project. Identify team members or sub-contractors, and their roles. Provide a short biography for each key team member (resumes of all key team members should be included in an appendix). Explain how you intend to coordinate and communicate with the IOUs. If you are teaming with other organizations, a clear delineation of responsibilities is requested for each task identified. Qualifications Describe the skills, abilities and experience that will enable you to successfully complete this project. Describe your specific experience with potential studies. List and briefly describe relevant projects, and provide contact information for at least three references and at least two examples of projects of similar scope to this one. Each project summary should provide the following information: o o o o o Project name Client organization Client reference (name, title and contact information) Project duration Project description, including the specific role of your organization 10
Where a team of multiple parties is responding, describe the team s individual and combined experience, and indicate which team members are responsible for each project described. Summaries and samples of prior work in addition to other supporting materials that demonstrate your ability to complete this project may be attached to your proposal in an appendix. Schedule and Task list Provide a task list and schedule that describe how you will achieve the development of the assessment consistent with the schedule and goals identified in the Statement of Work. Tasks should include, at a minimum: o Project Kickoff this should be conducted in-person with the IOUs and other stakeholders o Draft and final project work plans that include detailed data collection and primary research plans. o Periodic Progress Reports to the IOUs o Other tasks as deemed necessary by the to support development efforts Budget Provide a detailed budget, indicating labor and materials costs by task. You should provide detailed labor costs by individual or job title, indicating billing rate per hour, estimated hours for each task, and overall labor cost estimate. Provide detailed expense breakdowns by task and expense category, including materials and supplies, equipment, and travel. Develop detailed budgets for any subcontractor identified in the proposal. The target budget for this project is $###,###. Appendices The following materials should be submitted as appendices to your proposal: o One page or less resumes of the key personnel and organizations who will be assigned to this project. o Summaries and samples of prior work and other supporting materials that demonstrate your ability to successfully complete this project (by organization, if applicable), including examples and/or explanations of assessment studies that you have developed in prior efforts. Proposed Output Proposal Evaluation Proposals will be scored based on the following criteria: Previous experience and qualifications Prior experience, expert qualifications and demonstrated skills of the persons who will perform the work are of major importance in the evaluation of proposals submitted. In particular, what have been your experiences developing technical reference manuals or related documents? Have you conducted relevant research and/or 11
studies? Has your team adequately demonstrated the capability to develop, implement and expand the range of services required by the statement of work? Responsiveness to the solicitation The Contractor selected for this project will have primary responsibility for its successful implementation. Evaluation of work plans will include consideration of the overall approach to enhancing and implementing the project, the rationale or justification for the proposed approach and strategies, and the extent to which the Contractor demonstrates an understanding of the project goals and objectives. Are the proposed targets, milestones, and anticipated results realistic? Does the Contractor have the capability to achieve a successful, timely program launch? Is the work plan thorough, specific, and consistent with the stated program objectives? Is your budget realistic and complete? Cost Cost to successfully conduct the tasks for the identified project is a significant factor, and an economical price for completion of the work will be favorably considered in proposal evaluation. Evaluation of price will include both total proposed price and a review of hourly rates and total hours for completion of each task. Intent to Bid All interested parties must notify, via e-mail to Daniel Evans at devans@iowautility.org, their intent to bid by 5:00 p.m. CDT, April 29, 2016. Questions All questions should be submitted in writing to Daniel Evans at devans@iowautility.org by 5:00 p.m. CDT, May 6, 2016.. Responses to all questions will be e-mailed to all bidders that have announced their intent to bid by May 13, 2016. Submission of Proposals Proposals are to be sent in electronic format to Daniel Evans at devans@iowautility.org by 5:00 p.m. CDT, June 3, 2016. The IUA and the IOUs reserve the right to reject any and all bids. Contractors must be aware that the IUA and the IOUs allow no exceptions to the exact date and timeline for the opening of bids. All late bids will be rejected. Please provide a contact name and information for any questions that the IUA and the IOUs may have about your proposals. 12