The document discusses using sociodemographic data to improve the equity and effectiveness of demand-side management (DSM) energy efficiency programs. It notes that as DSM programs mature, their focus is shifting from just meeting goals to broader customer engagement and economic development. Analyzing factors like culture, language, location, and income can provide insights into how to better engage hard-to-reach groups. The data shows increasing diversity in some regions, and analyzing program participation and savings against income levels in one area revealed opportunities to improve outreach to small businesses and low-income communities. The Clean Power Plan and Clean Energy Investment Program also provide ways to direct more DSM resources to vulnerable groups.

1. DNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2014
Ungraded
Monday, October 19, 2015
Alexander Novie
ENERGY
Sociodemographics & Sustainability
Value Propositions in DSM Programs
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BECC 2015 Conference

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Outline
Equity in mature EE/DSM programs
• Articulating sustainability value propositions to diverse audiences
Sociodemographic approach
• Increasing diversity and identifying opportunities
New policy levers in CPP/CEIP
• Using EE/DSM as a resource for “vulnerable” communities
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Theoretical frameworks &
background
Social and behavioral aspects of energy use
•“Where and who are the people in energy policies?” vs. PTEM
•Use and behavior patterns based on socioeconomic, lifestyle,
race/ethnicity and gender
Analyzing demographics in EE/DSM
•Participation equity
•Applying residential segmentation to commercial energy users
Looking at unique needs of vulnerable groups
•Local market nuances used to define “hard-to-reach” populations
•Value propositions & EE as economic development tool
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DSM program participation:
equity & engagement
DSM programs are
maturing
• Most of the low-hanging fruit
has been eaten
Utilities are shifting
their focus
• “Meeting goal”  broader
strategies of customer
engagement and satisfaction
• Using EE/DSM as economic
development tool
A nuanced view of
equity is key
• Sociodemographic overlays
can provide additional insight
to the traditional focus on
customer load, size and
market verticals
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Sociodemographics: what factors?
Culture, ethnicity and race
• Different notions of trust with energy
providers and installation contractors
Language matters
• Non-English speaking households are much
less likely to be aware of potential energy-
saving appliances (Murray & Mills 2011)
Urbanity matters
• Rural facilities often have different
consumption profiles; reach of contractor
network and campaigns
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Changing sociodemographics:
increasing diversity
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Source: Pew Research Center (2015)

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Total population & Hispanic/Latino
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25%
35%
13%
10% 10%
46%
82%
25%
28%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
AZ NV NM CA All US
Percent Population Increase from 2000 - 2010:
Total & Hispanic or Latino
Total Population Hispanic/Latino Population

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Foreign-born persons since 1980
8
0
5
10
15
20
25
30
NM AZ NV CA US NM AZ NV CA US NM AZ NV CA US NM AZ NV CA US
1980 1990 2000 2010
%ofPopulationthatisForeign-Born
Growth in Foreign-Born Populations in NM, AZ, NV, & CA: 1980-2010

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Public opinion:
views on the climate problem
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Source: Pew Research Center (2015)
70
56
44
50
19
26
22
23
11
17
31
25
Hispanic/Latino
African American
White
U.S. Adults
Because of human activity Because of natural patterns
There is no solid evidence

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Public opinion:
support for climate initiatives
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Source: PPIC (2015)
76%
75%
71%
65%
African American Latinos Asians Whites
Support for GHG reduction in California
(SB-32)

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Other “hard-to-reach” in SW
Low-
income
Minority-
owned
firms
Older
adults
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Tucson area:
kWh savings & per-capita income
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Identifying opportunity:
small businesses in Southern Arizona
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Small Businesses & Program Potential in Santa Cruz County, Arizona
Zip Code
Total C&I
Businesses
Businesses
with 1 to 4
Employees
Businesses
with 5 to 9
Employees
Ratio of
Businesses
<10
Employees
Projects
Completed
ITD
Potential
Market
Remaining
85621 725 381 166 75% 73 86%
85646 74 51 12 85% 5 92%
85648 197 104 34 70% 16 88%
Santa Cruz
Summary
996 536 212 77% 134 87%

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Takeaways for DSM programs
Understanding the
communities within
the marketplaces
• Defining “hard-to-reach”
groups to focus on equity &
engagement
Analyzing data-
driven marketing
and outreach
• Digging deeper into data
analytics and looking at the
“who” and “why” behind
the models
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Question and refine how sustainability
value propositions are communicated

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Broader implications: CPP & CEIP
Clean Power Plan
(CPP) framed in
environmental
justice language
• Resources for “vulnerable”
and “overburdened”
communities
Clean Energy
Investment
Program (CEIP)
• 2-1 ERCs for EE projects in
low-income and
communities of color
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2-1 in 2020

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Areas of future research
How do we define
low-income and
communities of
color for program
design?
Rethinking
program
eligibility?
• Low-income individuals
are already overburdened
by paperwork!
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Remember the people
behind the data

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SAFER, SMARTER, GREENER
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Thank you!
alexander.novie@dnvgl.com
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