The 2020-2024 RTF business plan recognized the importance and long-standing interest in developing more granular savings that reflects the differences across the region. Given the policy implications of this work, and potential to increase measure complexity at the RTF, this project was scoped through the RTF Policy Advisory Committee. Through the scoping process, staff identified two areas of focus for this project:
- Accounting for population or demographic differences
- Considering secondary markets
The RTF contracted with Cadeo Group (acquired by Resource Innovations in 2024) to support these two studies. Overview of the studies and conclusions agreed to by the RTF Policy Advisory Committee at its June 2022 meeting are detailed below.
Demographic Sub-Regions
Research indicates there are differences in distribution of efficient measures based on geography or population characteristics. Given this, the RTF explored if it should consider regional differences in measure savings and cost analysis. The study focused on the four demographic identifiers: population density, income, race/ethnicity, and homeownership status. At the time of the study, the only data currently available for population-based identifiers was geographic through the census tracts. To test the potential to use demographic identifiers for analysis, the study focused on heat pump water heaters (HPWHs) given the wealth of data available, specifically regional sales data. Through the HPWH example Cadeo was able to develop individual baselines by demographic identifier but ultimately concluded that data availability for other measures would be a key limitation to expanding this to the broader RTF measure portfolio. The recommendation supported by the RTF PAC was for the RTF to explore state identifiers for those measures with ample data availability to do so.
Final Study Documentation:
- Exploring the Sub-Regional: Implications of Measures Using Population-Based Identifiers (April 2022)
- Presentation to RTF Policy Advisory Committee (June 2022)
Secondary Markets
Customers, when choosing equipment, can typically purchase either new or used equipment. Given this, the RTF studies if it should consider sales on the secondary market in the baseline mix for measure analysis. The study focused on three key RTF measures with large secondary markets: residential refrigerators and freezers, commercial combination ovens, and electric vehicles. The study concluded that including used equipment in the analysis was fundamentally at odds with how savings are calculated. The RTF PAC agreed with staff’s recommendation that secondary markets not be incorporated into the RTF measure baselines.
Final Study Documentation:
- Secondary Market Impacts on Measure Baselines (December 2021)
- Presentation to RTF Policy Advisory Committee (June 2022)