Green-e Energy Marketing Compliance Review (Fall 2015)

Green-e Energy hosted a training webinar to go over the who, what, when, and where of Fall 2015 Marketing Compliance Review (MCR), which is a Green-e Energy program requirement for certified products sold to residential customers. This is an opportunity to brush up on the program’s marketing requirements, learn about the new version of the Code of Conduct, and to ask questions.
Reviewing this information is highly recommended for all Green-e Energy participants.

Transcript

1. Marketing Compliance Review
   Training Webinar
   August 11, 2015
   Sarah Busch, Green-e Program Associate
   Robin Quarrier, Chief Counsel
   __________________________________________________________________
   

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2. WEBINAR OUTLINE
   1. MCR Process
   2. New Version of the Code of Conduct
   3. Hot Issues
   4. Q&A
   

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3. THE MCR PROCESS
   Who submits…........Participants selling to residential customers
   *New Pilot MCR for Non-Residential Products
   What to submit.......all materials relating to the certified product
   *See Checklist
   When to submit……………………………………….by Monday, August 31
   *Send submission to energy@green-e.org
   

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4. PILOT MCR FOR NON-RESIDENTIAL PRODUCTS
   A voluntary MCR for Multiple-Mix and Single-Mix Products sold to
   commercial customers.
   • Requests limited materials (PCLs and sales agreements)
   • Early compliance with the new version of the Code of Conduct
   • All products required to submit for MCR next year
   

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5. THE MCR PROCESS
   By August 1st August 31st Early Fall Mid Fall 1 Month Later
   Request for
   Materials
   MCR Materials
   Due
   1st Staff Review
   Follow Up
   Forms Sent to
   Participants
   Completed
   Changes Due
   for Residential
   Products*
   2nd Staff Review
   *Ask questions
   and complete all
   requested
   changes before
   the deadline.
   

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6. THE MCR PROCESS
   MCR Instructions: http://www.green-e.org/getcert_re_veri.shtml#mcr
   

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10. New Version of the Code of Conduct
    Released July 24, 2015
    • All products must be in full compliance with the new version
    starting July 24, 2016.
    • Fall 2015 and Spring 2016 MCR, staff will offer Participants
    feedback according to both versions of the Code of Conduct.
    

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11. New Version of the Code of Conduct
    Highlights
    • New document organization
    • Calendar of Green-e deadlines
    • Use of Product Content Label template is required
    • Price Terms & Conditions template removed/not required
    • Utilities are no longer required to sent Historic PCL to customers that did not purchase
    the certified product (now only purchasers must receive HPCL)
    • New rules for social media marketing and utility marketing companies or partners
    • Updated Logo Language
    • Updated REC language (short and long) and new disclosure requirements
    

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12. New Version of the Code of Conduct
    New Version of the Code of Conduct
    http://www.green-e.org/getcert_re_stan.shtml#coc
    Upcoming Webinar:
    Recent Updates to the Code of Conduct
    September 2, 2015
    Register on the CRS Events webpage, or
    https://attendee.gotowebinar.com/register/8376611012582283265
    

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13. Hot Issues
    • Enrollment
    • Welcome Packet
    • Subscription Mechanism Requirements
    • Prospective & Historic Product Content Label
    • Verification Issues
    • Price Terms & Conditions
    • Call center requirements
    • Green-e Energy certified logo use
    • General marketing requirements
    

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14. ENROLLMENT
    Green-e Energy has requirements for every enrollment channel.
    • online
    • over-the-phone
    • in-person/door-to-door (warm and cold marketing)
    • material with subscription mechanism
    • electronic media
    

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15. ENROLLMENT
    Website Direct Mailer Door-to-Door Over-the-
    phone
    At enrollment NEW: Fully visible
    subscription mechanism
    requirements.
    Hyperlinks to PPCL and
    PTC.
    Subscription
    mechanism
    requirements
    Subscription
    mechanism
    requirements
    NEW: Call
    center
    language
    Within 60 days
    of enrollment
    Welcome Packet (PPCL +
    PTC)
    Welcome
    Packet (PPCL +
    PTC)
    Welcome
    Packet (PPCL
    + PTC)
    Welcome
    Packet (PPCL +
    PTC)
    Annually by
    August 1
    (previously
    June 30)
    Historic PCL Historic PCL Historic PCL Historic PCL
    Automatic renewals: Deliver the updated Prospective PCL to customers by March 1.
    

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16. WELCOME PACKET
    Welcome packet must be delivered to customers within
    60 days of enrollment.
    2015 Prospective Product
    Content Label
    Price, Terms & Conditions
    _____________________________
    ___________________________________
    ____________
    ________________________________
    _____________
    _____________
    _____________
    ____________
    __
    _______________
    __ ___________
    _______________
    ___________ ______________________
    ___________ ______________________
    ___________ ______________________
    ___________ ______________________
    ___________ ______________________
    ___________ ______________________
    ___________ ______________________
    D
    D
    d
    Nice.
    Green-e Energy Certified New2
    Renewables in [PRODUCT NAME]
    Generation
    Location
    Wind 50% TX
    Hydro 50% NY
    

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17. SUBSCRIPTION MECHANISM REQUIREMENTS
    Common Issues
    - Product mix (resource type and generation location) do not match Prospective PCL.
    - Company name unclear, changes or is missing.
    - Relationship to customer's default utility unclear.
    Requirements:
    1. Resource mix
    2. Geographic location
    3. Price of certified product, month-to-month rate, other fees
    4. Contact length
    5. Fee for early termination (if applicable)
    6. “Green-e Energy certified” Logo, with www.green-e.org or Green-e Energy logo
    language
    7. For REC products: Short REC Disclosure Language
    

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18. PROSPECTIVE PRODUCT CONTENT LABEL
    Purpose: Shows customers the product offered (including resource type).
    Sample requirements:
    • Prospective Product Mix (resource type, proportion, and location)
    • Enrollment level options or selection (selection must be disclosed in PPCL or welcome
    packet)
    • For REC products: Short REC disclosure language with hyperlink to online Long REC
    disclosure language
    • Comparative mix
    • New Date Footnote
    New: Prospective PCL template required. Specific title required.: “[Year] Prospective Product
    Content Label”
    Prospective PCL must be updated annually by March 1.
    Common Issues
    - REC products: Omitting REC disclosure.
    - Electricity products: Listing states outside of the product’s region. Or, listing a region instead
    of specific states.
    - Use of “and” instead of “or.”
    

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19. Format cannot
    change.
    

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20. Short REC Disclosure Language
    “[Product Name] is a Renewable Energy Certificate (REC) product and does not
    contain electricity, which may be billed separately or by a separate company. A REC
    represents the environmental benefits of 1 megawatt hour (MWh) of renewable
    energy that can be paired with electricity. For more information, see [hyperlink to
    Participant webpage containing long REC disclosure language].”
    • Fully visible on Prospective Product Content Label
    • Fully visible on Historic Product Content Label
    • Fully visible on Price Terms & Conditions
    • Fully visible on all marketing materials with a subscription mechanism
    • Fully visible prior to online purchase
    • NEW: Links to online Long REC Disclosure Language
    REC PRODUCTS
    

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21. Long REC Disclosure Language
    “Your purchase of Renewable Energy Certificates (RECs) supports renewable electricity production in the region
    of generation. For every unit of renewable electricity generated, an equivalent amount of RECs is produced,
    and by purchasing and pairing RECs with your electricity service you are using and receiving the benefits of that
    renewable electricity. You will continue to receive a separate electricity bill from your utility for electricity
    service [if applicable]. Your REC purchase also helps build a market for renewable electricity. Increased demand
    for and generation of renewable electricity helps reduce conventional electricity generation in the region
    where the renewable electricity generator is located. It also has other local and global environmental benefits
    which may include emitting little or no regional air pollution or carbon dioxide.
    The RECs in [Product Name] are verified and certified by Green-e Energy, and [Company Name] is required to
    disclose the quantity, type and geographic source of each certificate. Please see the Product Content Label for
    this information. Green-e Energy also verifies that the renewable certificates are not sold more than once or
    claimed by more than one party. For information on Green-e Energy please visit its website, www.green-e.org.”
    NEW: Long REC language fully displayed on website, or a link on Participant
    website with a sentence such as the following:
    “For more information about Renewable Energy Certificates (RECs), see:
    [hyperlink to Participant webpage containing long REC disclosure language].”
    REC PRODUCTS
    

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22. “For comparison, the current average mix of resources supplying
    [region or your electric utility] includes: Coal (x%), Nuclear (x%), Oil
    (x%), Natural Gas (x%), Hydroelectric (x%), and Other (x%).”
    - Utility Green Pricing Programs must disclose the resource mix that
    the customer would have otherwise received.
    - Use the most recently available data, and cite the year.
    - RECs reported in alternative mix must be retired.
    COMPARATIVE ELECTRICITY MIX
    

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23. HISTORIC PRODUCT CONTENT LABEL
    Purpose: Shows customers the actual proportion and location of resources that were
    delivered to (retired for) the customer.
    Sample requirements:
    • Resource type and proportion of the actual supply procured
    • Generation location (by state) of the actual supply procured
    • Sent electronically or by mail
    New: Historic PCL template required. (Specific title required.)
    Delivered to all customers that purchased the product in the previous year.
    Starting 2016, Historic PCL must be delivered by August 1.
    Upfront Historic PCL (one-time sales only).
    Common Issues
    - Historic product mix does not align with prospective product mix (verification issue).
    - Customers informed of the incorrect product mix.
    - REC products do not list specific states.
    

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24. VERIFICATION ISSUES & PCLs
    Green-e Energy program requirement: Supply must match marketing
    disclosures (sales) to ensure that the customer receives the product promised
    at enrollment.
    Common Issues
    • Mid-year changes to product mix impact the annual Green-e Energy Verification Audit.
    • Prospective PCL cannot advertise a more specific mix than the Historic PCL.
    • Prospective PCL cannot list resource type not included on the Historic PCL, and vice versa.
    • Can result in situations where a second Historic PCL must be sent to customers, a refund if
    offered, or replacement supply must be procured.
    

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25. 2014 Prospective/REC Product
    Wind 100% National
    2014 Historic/REC Product
    Hydro 50% New York
    Wind 50% Texas
    VERIFICATION ISSUES & PCLs
    Verification issue; a new resource type
    is added and proportions have varied
    beyond 4 percentage points.
    

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26. 2014 Prospective/REC Product
    Wind 100% Texas, Iowa,
    and Kansas
    2014 Historic/REC Product
    Wind 100% Texas
    Use of “and” promises to the customer
    that they will receive supply from all
    states listed on the Prospective PCL.
    Now there is a discrepancy because the
    customer is not delivered the product
    mix advertised in the Prospective PCL.
    VERIFICATION ISSUES & PCLs
    

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27. 2014 Prospective/REC Product
    Wind 100% Texas, Iowa,
    or Kansas
    2014 Historic/REC Product
    Wind 100% Texas
    When “or” is included in the
    Prospective PCL, the customer is given
    the impression that the product may
    be generated in any of the states listed.
    Now there is no issue with the Historic
    PCL because the customer is provided
    with a product generated within the
    location of states advertised in the
    Prospective PCL.
    VERIFICATION ISSUES & PCLs
    2014 Prospective/REC Product
    Wind 100% Texas, Iowa,
    Kansas
    Use of commas only implies “or.”
    Green-e strongly recommends use of
    “or.”
    

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28. VERIFICATION ISSUES & PCLs
    2014 Prospective/PJM Electricity
    Product
    Hydro 50% Pennsylvania,
    Virginia, or
    New Jersey
    Wind 50% Pennsylvania,
    or Ohio
    2014 Historic/PJM Electricity
    Product
    Hydro 50% Virginia,
    New Jersey
    Wind 50% Pennsylvania
    Note: Changes in product mix impact your product’s annual Verification Audit
    and certification.
    

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29. VERIFICATION ISSUES & PCLs
    2014 Prospective/PJM Electricity
    Product
    Hydro 50% Pennsylvania
    Virginia
    New Jersey
    Wind 50% Pennsylvania
    Ohio
    2014 Historic/PJM Electricity
    Product
    Hydro 52% Virginia,
    New Jersey
    Wind 48% Pennsylvania
    NEW: Clarification in the Code of Conduct on substantial differences in supply
    Green-e Energy Code of Conduct, Section III.E
    A Green-e Energy Certified Product Mix Change worksheet is required for the following
    situations:
    1. Proportion of renewable resources changes by greater than 4 percentage points
    2. A change in geographic location of generation
    3. A resource type is removed from or added to the supply
    Green-e Governance Board approval is required for changes greater than 10 percentage
    points.
    

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30. PRICE, TERMS & CONDITIONS
    Purpose: Clearly describes the customer’s responsibilities when purchasing
    the certified product.
    Sample requirements:
    • Cost of product, other fees
    • Rate structure (variable or fixed)
    • Contract length
    • How the customer will be billed
    • Fee for early termination
    • How to contact the company
    New: PTC template not required. Although, requirements must be disclosed clearly.
    Common Issues
    - REC products: Unclear to the customer that the certified product does not contain electricity.
    - Rate structure, contract length, or automatic renewal unclear.
    

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31. GREEN-E LOGO USE
    • Meet the color guidelines and other requirements of the Green-e Logo Use
    Guidelines.
    • On websites, should be a direct link to www.green-e.org.
    • Placement on a white background.
    • Use the “Green-e Energy certified” logo on PCL, PTC and, and only in
    association with the certified product. Place with green-e.org or Logo Language.
    • When marketing to end-use customers, do not refer to products as Green-e
    “certifiable” or “eligible”
    

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32. GREEN-E LOGO LANGUAGE
    [Product Name] is Green-e Energy certified, and meets
    environmental and consumer-protection standards set forth by
    the nonprofit Center for Resource Solutions. Learn more at
    www.green-e.org.
    Requirement: Language must be present on the Historic PCL, Prospective PCL, Price,
    Terms and Conditions, and the Participant’s Web site.
    

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33. CALL CENTER ENROLLMENT
    NEW: Language for enrollment over-the-phone. Call centers much be able to
    provide all subscription mechanism requirements, and the following:
    For certified competitive electricity and green pricing electricity products:
    “We [or, Company Name] offer [Product Name]. It is made up of electricity generated
    from [list all resource type(s) found on Prospective Product Content Label] [power /
    energy] located in [insert names of states or region listed on Prospective Product
    Content Label]. Would you like to know more about [Product Name]?”
    For certified REC products:
    “We [or, Company Name] offer [Product Name]. It is made up of [list all resource
    type(s) found on Prospective Content Label] renewable energy certificates generated
    [“in the lower 48 US States,” or as specific as the names of the states listed on the
    Prospective Product Content Label]. [Product Name] does not contain electricity,
    which may be billed separately or by a separate company. Renewable electricity
    generation and use are tracked through RECs, and so by matching RECs with your
    electricity service you are using renewable electricity. Would you like to know more
    about [Product Name]?”
    

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34. Best Practices: CALL CENTERS
    • Provide customer service representatives with a cheat sheet about the
    certified product.
    • For REC products, clarify that changes on the bill will be in addition to
    charges for electricity service.
    • “Green-e Energy is a third-party certification program for the [product
    name] [product type] product.”
    • Point customers to resources such as Green-e.org if they seek more
    information about renewable energy, or the certification program.
    • The facilities that generate the product (renewable energy or product)
    became commercially operational in the last 15 years.
    

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35. CONTROL OVER MARKETING MATERIALS
    • Who is selling the customer this Green-e Energy Certified product?
    • Partner websites (may recommend products, however cannot sell a
    certified product if not a Participant in the program)
    • Green-e Logo may only be used in association with the certified product,
    and on materials created by the Participant.
    

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36. MATERIALS WITHOUT SUBSCRIPTION MECHANISMS
    • Marketing claims should align with the FTC Green Guides.
    • Use of “local” or “regional” requires disclosure of state in the Prospective
    PCL.
    • Broad statements about being the “first” renewable energy company/REC
    seller in X or to provide X must be accurate and backed up.
    

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37. Q&A
    

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38. UPCOMING WEBINARS
    Register for all webinars at CRS Events, www.resource-solutions.org/events
    Recent Updates to the Green-e Energy Code of Conduct
    September 2, 11AM PT/2PM ET
    Preventing Double Claims: Best Practices in Renewable Energy Marketing,
    Part 1 (for Green-e Participants)
    September 23, 11AM PT/2PM ET
    Preventing Double Claims: Best Practices in Renewable Energy Marketing,
    Part 2 (for Generators and project developers)
    September 30, 11AM PT/2PM ET
    Renewable Energy Markets Conference
    October 18-20, Washington DC
    www.renewablenergymarket.com
    

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39. 5 TAKEAWAYS
    1. MCR submissions due August 31, 2015 for all products sold to residential
    customers
    2. Submit all materials related to the certified product
    3. Voluntary Pilot MCR for non-residential products
    4. New version of the Code of Conduct available – all products must be in
    compliance starting July 24, 2016.
    5. Throughout the year, your Green-e Energy Regional Representatives are
    available to review marketing materials.
    

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40. FOR MORE INFORMATION
    MCR Instructions and Checklist: http://www.green-
    e.org/getcert_re_veri.shtml#mcr
    Map of Green-e Energy Regional Representatives: http://www.green-
    e.org/images/Green-e-Reps-Map.png
    Robin Quarrier
    Chief Counsel
    Robin.quarrier@resource-solutions.org
    Sarah Busch
    Green-e Program Associate
    Sarah.busch@resource-solutions.org
    

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