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Example In 2030, Community A has a business -as -usual energy use of 1000 MMBtu and a business -as -usual emissions factor of 0.10 tCO2e/MMBtu. Community A commits to efficiency strategies that reduce energy use by 25%by 2030 and plans to install enough on -site photovoltaics to generate 100 MMBtu per year. The energy utility that serves Community A plans to reduce their emissions factor by 30% by 2030. Energy Efficiency Reduction: 1000 MMBtu x 25%x 0.10 tCO2e/MMBtu = 25 tCO2e Electric Grid Mix Reduction: 750 MMBtu x 0.10 tCO2e/MMBtu x 30%= 22.5 tCO2e On -Site Photovoltaics Reduction:100 MMBtu x 0.07 tCO2e/MMBtu = 7 tCO2e Definitions The following terms are used in the calculation of the savings potential associated with each strategy. • Emission reduction For each strategy, the emission reduction represents the reduction in tonnes of carbon dioxide equivalents (tCO2e) from the business -as -usual based on changes in energy intensity and emission intensity for each strategy. • Building energy use Building energy use refers to the amount of energy used in buildings, in million British thermal units (MMBtu). This is the first data point needed for the energy efficiency strategies, and is typically separated into commercial and industrial buildings versus residential buildings, as well as existing versus new buildings. For strategies that have different savings rates based on fuel type, building energy use may also be separated between electricity and natural gas. While BAU building energy use is used as the starting point for all efficiency strategies, planned building energy use is the starting point for decarbonization strategies. Planned building energy use is defined as the amount of energy anticipated after all efficiency and fuel switching strategies are applied. • Implementation period The implementation period is the time period during which each strategy is implemented. Some strategies result in savings that persist beyond their implementation period while others do not. • Participation rate Participation rates are defined as the percentage of people or buildings adopting the given strategy, assuming all households operate at the same energy intensity, and all jobs have equivalent energy intensities. Since this is not true (especially for commercial/industrial buildings), the participation rate is more accurately described as the percentage of energy use that will be affected by the strategy. For example, if large commercial buildings comprise 25% of the Wedge Diagram Methodology I September 2017