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					     CALIFORNIA ENERGY                       RESIDENTIAL
    EFFICIENCY STRATEGIC
          PLANNING

       Last Revised: 12/11/07               Meeting Minutes                    Created By: Karin Corfee



 Meeting Name         Residential Strategic Planning Meeting
 Meeting Date         December 11, 2007
 Meeting Time         9:00AM – 5:00PM, PST
 Venue                Sacramento Municipal Utility District       City        Sacramento
 Attendees            See Attendee List

Meeting Notes
  1. Introduction
           a. The goal of this session is to look forward to 2020 & 2030.
           b. The objective is to create a vision for the state, incorporating the recent CPUC initiative
              and including the three Big Bold Programmatic Initiatives:
                    i. Zero Net Energy residential construction by 2020
                    ii. Zero Net Energy commercial construction by 2030
                   iii. Improve quality & enhance compliance of HVAC
   2. Presentation by Justin Dunning, California Green Building Program
           a. See California_Green_Builder_SMUD_12-11-07.ppt
           b. Questions
                    i. How does the California Green Builder (CGB) program compare with Build It
                       Green & EnergyStar?
                             1. CGB tries to convey simple messages to constructors & buyers.
                             2. The LEED standard is stricter with codes and more expensive to
                                implement.
                    ii. What is the value to the end-user & end-builder?
                             1. The value is 650 kWh per year.
                             2. A home’s value to the market is driven by the sales person’s valuation.
                                CGB is training sales people to understand the benefits of the program in
                                or order to improve marketing of the new home and include improvements
                                in the valuations.


                   iii. Where is most of CGB’s business?


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                             1. CGB has had the most impact in Southern California. The program is
                                designed to make builders take a step out of their comfort zone.
                     iv. Would the downturn in the economy lead to less participation in your program?
                             1. On one hand, the company has increased the number of homes built. But
                                at the same time, some construction companies have gone out of business,
                                which reduces the total demand.
                     v. What kind of work has CGB done with multi-family and mixed-use homes?
                             1. CGB has created one multi-family home. But, the company has not
                                worked on a mixed-use house.
    3. Build It Green Presentation by Brian Parker, government relations manager
             a. Build_It_Green_PUC_Presentation_121107.ppt
             b. Questions
                      i. How are the single- & multi-family existing guidelines constructed?
                             1. The guidelines are based around title-24. Build It Green (BIG) has also
                                begun outreach to agencies, state and local governments.
                     ii. With proliferation of programs, how does BIG distinguish itself?
                             1. BIG takes into account the concerns of local government. The programs
                                are designed in a way to be compliant with government regulatory
                                structures. BIG has an excellent training program.
                     iii. How are the programs funded?
                             1. BIG receives funding from PG&E, local utilities, and third parties. The
                                company is also beginning to bring in nationally recognized builders and
                                trainers.
                     iv. Are efforts coordinated between CA Green Builder & Build it Green?
                             1. The consumer should have the option, so there’s no incentive to combine
                                the programs. CGB & BIG approach green building from different
                                standpoints. BIG is trying to affect the market and change how the
                                consumer makes a decision.
    4. Local Government, IOU and public utilities roundtable discussion
             a. Lois Wright from Sacramento Municipal Utility District (SMUD) pointed to the need for
                a language to be developed into the plans for energy efficiency and renewables. SMUD
                is looking to set the stage for next 15 years, creating a standard which local governments
                can use.
                      i. There is tremendous inconsistency in the permit process within SMUD’s
                         jurisdictions. In an effort to reduce cost and streamline the process, these
                         jurisdictions have agreed upon the following:
                             1. Waive the fee for solar installation retrofit.
                             2. Begin work on standardization packet.


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                             3. Commit to an over-the-counter review of the permit application.
                             4. Follow-up installations with inspections.
                     ii. Planners are currently developing green building programs without consulting the
                         building program coordinators.
                     iii. SMUD is looking to form a public agency council with Build It Green. Builders,
                          planners, and utilities will be brought together by SMUD to establish consistency.
             b. Frank Spasaro, manager of partnership program at San Diego Gas & Electric (SDG&E)
                spoke about SDG&E’s focus on outreach partnerships with customers.
                      i. SDG&E’s work on permits has fallen apart recently due to condo conversion.
                         Climate change and AB-32 are driving the change for where the partnerships are
                         going.
                     ii. SDG&E is doing a lot of work with local governments regarding their green
                         rating system for cities.
                     iii. Green and climate issues are the new focus for SDG&E.
             c. Theresa Barron, SDG&E. City of Chula Vista Partnership. (ppt)
                      i. See Chula_Vista_Partnership.ppt
             d. Nancy Jenkins, partnership portfolio manager for Southern California Edison (SCE),
                discussed local government partnerships.
                      i. SCE conducts monthly engagements with internal coordinators and
                         representatives from local governments in order to understand demographics and
                         climate issues.
                     ii. SCE is beginning to understand the community needs and establishing better use
                         of resources.
                     iii. Looking forward, SCE wants to connect well to the green building agencies,
                          connecting green building with energy efficiency standards.
                     iv. SCE is looking to improve standards training and emerging technologies. The
                         company is also trying to simplify and integrate the program so consumers can
                         better understand what EE can do.
             e. Dave Hafner from PG&E spoke about efforts towards energy reduction
                      i. 80-90% of energy savings are realized with lighting and CFL installation.
                     ii. PG&E has partnered with the California Conservation Core, establishing an
                         effective cost reduction structure.
                     iii. With respect to youth services, PG&E has rolled out entry level positions,
                          providing lower costs and the first step for the younger generation to enter the
                          industry.
                     iv. By 2009, PG&E plans to partner with local governments, integrating program
                         offerings of energy reduction.
             f. Jodi London’s presentation


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                      i. The goal is to integrate local government into residential development offerings.
                      ii. The objective of the proposal is integration through the following steps:
                             1. Create integration across all energy saving programs and local
                                governments.
                             2. Develop local codes that can be adopted regionally until the state adopts a
                                state-wide code.
                             3. Establish capacity building as a means to better manage resources.
                     iii. Local governments need to create in-house resources with regards to energy
                          programs and codes.
                     iv. Contract a consulting team to establish partnerships of varying sizes and needs
                         with local governments.
                      v. The work that is done in each jurisdiction will create a sense of competition
                         between local governments. It is necessary to report how much of the budget is
                         spent in each jurisdiction.
             g. Open Discussion and Questions
                      i. Have investor owned utility (IOU) partnerships with local governments proven to
                         be productive and cost effective?
                             1. IOUs have been successful in their partnerships, but they do more to
                                reduce their costs. The portfolios are cost effective, but their activities
                                simply result in costs, showing no efficiencies.
                             2. Partnerships are very resource intensive, yet they address issues that
                                would otherwise not get done.
                      ii. The biggest opportunity for marketing is in the existing homes. At time of resale,
                          there are requirements for upgrading and maintaining existing homes in San
                          Francisco and Berkeley.
                     iii. Marketing efforts must look beyond point-of-sale to be effective.
                     iv. Local governments are looking to create an ordinance at the time-of-sale.
                      v. When creating an incentive program, every dollar that is spent on education and
                         outreach is spent on the outreach. There are no information-type programs.
                     vi. The paradigm on how to measure cost-effectiveness must change.
                     vii. One thing that’s being overlooked is the appraisal. If we can build awareness in
                          the appraisers, the market can be even more attractive. Renewable energy and
                          energy efficiency ought to become a part of valuation.
    5. Roundtable discussion on local government initiatives.
             a. Rich Chan’s presentation on city of Berkeley.
                      i. The city has worked closely with Build It Green.




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                     ii. The key categories have been identified for building planning, regarding height
                         and size.
                     iii. Rolling out for commercial construction will begin as early as next year.
                     iv. The city will work with agencies to develop an enforcement of codes and
                         standards with respect to time-of-sale.
                     v. The city is working with the association of realtors, pursuing point-of-sale
                        revisions.
                     vi. Energy financing is a solution to the problem that long-term energy projects can
                         be amortized through traditional loans. More importantly, energy improvements
                         currently done to properties are not properly accounted for.
             b. Tam Hunt, energy program director for City of Santa Barbara.
                      i. See PUC_pres.ppt
             c. Questions and Comments
                      i. There is a low percentage of households that permits HVAC. What can be done
                         to help facilitate the partnerships with the local governments?
                             1. Create a mandate that proof of permit is required upon the purchase of
                                HVAC equipment.
                             2. Homeowners and builders need to be brought into the loop as to who is
                                required to attain permits for the purchase.
                     ii. The CEC is working with local governments to enhance code enforcements and
                         create partnerships.
                             1. A previous commercial sector meeting discussed work which could be
                                done with licensing agencies to incorporate HVAC and energy efficiency
                                standards.
                             2. The HVAC group is recommending ideas to get more permits pulled.
                                Online permitting is possible, but it requires funding.
                             3. Homeowners think that pulling a permit will cause a property to be re-
                                valued and they fear they will pay more taxes after reappraisal.
                                Homeowners need to be shown that there is value added for pulling
                                permits and it will not trigger re-valuation.
                             4. One suggestion is getting an expedited service when you have a green
                                permit.
                     iii. Cal Broomhead described the major tools that governments have to work with,
                          including education, incentives, technical assistance, and law.
                             1. The city has been providing the heavy lifting program, but needs to
                                understand how all these tools move together.
                             2. Create an enforceable law that involves all the stakeholders and
                                accomplishes the initiatives set forth.



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                             3. Think about what kind of retrofits should be used to incentivize and
                                contribute towards zero-net energy homes.
                             4. There are things that are too difficult for governments to manage.
                                     a. For example, there are boilers that are over 100 years old.
                                        However, creating incentives for replacement is difficult because
                                        the credits received won’t cover the tax that must be paid. The
                                        incentives are based on Title 24, not absolute improvement.
    6. Zero Energy Home Initiatives and Green Building Initiatives
             a. Mike Keesee, SMUD
                      i. See PUC_Presentation_12-11-07.ppt
             b. Mark Riffey, Roseville BEST program
                      i. See CPUC_Presentation.ppt
             c. Tom DeCarlo, SDG&E
                      i. See SDG&E_Firestorm_Recovery_EE_Programs.ppt
             d. Matt Brost, SunPower
                      i. One year ago, there were 6 communities that were 100% solar. Today, there are
                         over 70 communities.
                     ii. The peak of the housing market was in 2004, selling about 6-8 homes per month.
                         Currently there are 2-4 homes selling a month.
                     iii. It would be wise to invest in the energy efficiency market now in order to receive
                          greater savings later.
                     iv. SunPower is striving to increase buyer demand. The company will create a pull
                         that gets consumers excited and eager to implement.
                     v. Often times a better absorption rate is more important than the actual number of
                        homes sold.
                     vi. With respect to marketing, PG&E and SMUD have done well by incentivizing
                         their consumer, but it is important to create incentives that are proportionate to
                         costs.
             e. Rich Coyle, VP of building science DR Horton
                      i. DR Horton is the largest home builder in California, and has established two
                         projects in Roseville that were considered gold level of “Environments for
                         Living”.
                     ii. LEED certified projects have begun along with installing 100% fluorescent
                         lighting. Solar implementation is the last piece to work on.
                     iii. With regards to HVAC, DR Horton will put one system in any home,
                          guaranteeing any room in a home will be within three degrees of the thermostat
                          setting.



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                     iv. The existing home market, which composes 75% of the housing market, must be
                         incentivized with solar options.
    7. Peter Banwell, US EPA Energy Star Program
             a. See CA_Res_Working_Group_Dec11.ppt
             b. Questions
                      i. Asking “Is your home EnergyStar compliant?” and receiving a “Yes” or “No”
                         answer may not be an effective marketing tactic to customers. Perhaps there
                         could be a tiered level of EnergyStar.
                             1. That idea will be brought up with program director.
                     ii. Plasma TVs are very energy intensive. How will EnergyStar address
                         manufacturers of plasma TVs?
                             1. Tier 1 will have very stringent specifications by which plasma
                                manufacturers must abide.
                     iii. Where are LEDs on EnergyStar’s roadmap?
                             1. LEDs are excellent at reducing energy use, but they haven’t quite broken
                                into the market. EnergyStar will address LED use in the future.
    8. Plug loads presentations by Chris Calwell, Ecos Consulting (ppt)
             a. Ecos_plus_loads_presentation_to_CA_strat_plan_group.pdf
             b. Questions
                      i. Because technology is changing so quickly, what should be done about the fact
                         that people won’t be changing their TVs for 10-20 years?
                             1. The average number of TVs per household is rising every year because old
                                TVs get put in rooms of less frequent use. It’s simply about being
                                conservative with your TV use.
                     ii. How would US manufacturers react with regards to the acceptance of a
                         categorical labeling?
                             1. If other countries are implementing categorical standards, manufacturers
                                would be very willing to cross over to the US without much resistance. In
                                the end, it comes down to US data, products, and testing.
                     iii. Is there technology to create energy efficiency as the default setting in TVs?
                             1. Energy Star is still discussing the regulations behind that. If energy
                                efficient settings are the default settings, perhaps it should be mandated
                                that the user makes the decision about energy settings when turning on the
                                TV for the first time.
    9. Bill Brobeck, Brobeck Solar Energy Debit Card
             a. The card is available to any building owner.
             b. When signing up, solar panels will be installed on top of the owner’s building.


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             c. There is no cost for the participants that host the PV panels.
             d. The debit card may only be used to purchase efficient energy related products.
             e. More information can be found at www.brobecksolarenergy.com
             f. Contact Bill at billbrobeck@unwiredltd.com or (925) 788-9652
    10. Sub-Committee Breakout Session
    11. Debrief and group discussion
             a. Market transformation sub-committee
                       i. Strategy of the market transformation group is to create a value evolution for
                          energy efficiency (EE).
                      ii. The short-term goal is to create monetary and non-monetary rewards for
                          implementation of EE
                              1. It is necessary to devise optimal motivation points for feedback and public
                                 standing.
                              2. Explore the successes of non-profit and for-profit third party entities that
                                 can manage the market transformation.
                      iii. The mid-term goal is to market EE as a health issue, personally and globally.
                              1. Implementing the goals in day-to-day and long-term activities
                              2. Collaborate with the Northwest Alliance.
                      iv. The long-term goal is to develop a mindset where EE becomes business as usual.
                              1. EE will be integrated in the public mindset
                              2. Continually redefine the shape of EE as needed.
                       v. Move from actively becoming engaged in EE to instilling it as a part of the
                          lifestyle
                      vi. Time and metrics for market transformation are:
                              1. 2009-2011. Attain a snapshot of current EE practices. Develop baseline
                                 EE measures based on goals and results. Move beyond TRC metrics to
                                 determine the success of programs. Develop another way to evaluate EE.
                              2. 2009-2015. Create best practices. Move towards achievement of 3-5
                                 energy efficiency best practices and measure behavioral changes.
                              3. 2009-2020. Determine the 5 best ways for market transformation, through
                                 point of sale.
                     vii. Public sector, private sector, trade organization, and utilities all have conflicting
                          interests. The issue is achieving goals. Integration and implementation are
                          essential in order to create a consensus of best practices.
                     viii. A well trained sales workforce can advocate for the products. Match the values
                           and knowledge of the stakeholders with that of the sales force.



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                     ix. Financing requirements and outreach transformation are critical. Incentivize
                         those who are practicing EE. Create barriers for the energy hogs.
                     x. Ensure that policy requirements are aligned with utility rates. Create a holistic
                        home energy efficiency program, possibly through white-tags.
                     xi. Feedback loops are important. Understand how feedback loops are implemented,
                         determine which ones are effective, and then spread the best practices.
             b. Residential Integration Sub-committee
                      i. The primary concern is how to integrate distributive generation (DG), demand
                         response (DR), and energy efficiency (EE).
                     ii. Problems occur with the way the IOU contracts are set up. The accounts
                         department of the IOUs make it difficult to set up DG, DR, & EE. Translating the
                         integration is difficult because of the way the contracts are set up and how the
                         audits occur with the CPUC.
                     iii. A pilot program should set up a “one-stop shop” for the customer. PG&E has
                          begun a pilot, working with stakeholders, to integrate at the residential,
                          commercial, agricultural, and industrial levels.
                     iv. Find analytical tools to integrate ideas across customers. Also use technology
                         tools like AMI.
                     v. The core problem is integrated DG, DR, & EE. Start with the energy issues and
                        add on to that.
             c. Feedback
                      i. Think about two key initiatives:
                             1. Integration from the utilities perspective
                             2. Integration of programs
                     ii. What are the plans for the “one-stop shop”?
                             1. Show the customer how to achieve maximum value from DSM
                                opportunities. Do not leave it up to the utilities to decide.
                     iii. Are there separate funding groups?
                             1. Do not let the funding get in the way of integration. In the short term,
                                create separate funding for DR, DG, and EE. But, the long-term goal is
                                for DSM funding that feeds into DR, DG, & EE. Aim for a seamless one-
                                stop shop.
                     iv. Ideally, one representative should talk to customer about every need. Stay away
                         from directing the customer to different people for different types of energy
                         savings.
                     v. From a state-wide perspective, there is a huge goal for DR and tying in permit
                        requests. DR efficiencies cannot be mandated without first addressing the EE
                        side.



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             d. Standardization
                      i. Standardization must begin by looking at what can be done right now.
                         Understand what can be done with LEED, Title-24, Build it Now, and California
                         Green Building.
                     ii. The Utility commission will not accept CEC’s data. It seems that the CEC and
                         the utilities do not understand what the other is doing. The CEC needs to have a
                         permanent position on the boards so there is direct communication on a long term
                         basis.
                     iii. The Database of Energy Efficiency Resources (DEER) has not been used
                          effective.
                     iv. There needs to be more transparency with how standardization is done.
                     v. There is no difference in valuation of energy for different times of year. DEER
                        values can be as low as half a cent per kWh and as high as 71.68 cents per kWh.
                        Efficiencies should focus on reducing 71.68 cents per kWh usage. TRC isn’t
                        always going to be 3 or 4 cents
                     vi. Using 2005 as a baseline, create a measurement of energy usage, calibrated from
                         1000 down to 0, based on the following six measures:
                            1. kWh
                            2. PKW
                            3. Lighting
                            4. Plug loads
                            5. Distributed generation
                            6. Distributed generation peak
             e. Feedback.
                      i. Title-24 is the key program for measurement and how utilities will receive
                         money.
                            1. LEED, GreenPoint Rated standards only affect the top 25%. These
                               programs are references based upon Title-24.
                            2. Title-24 should be the measure for which the government creates
                               standardization.
                            3. The green programs do not go into specifics about measurements of their
                               energy efficiency. Instead, the programs state “above code”.
             f. Goals Committee
                      i. One of the straw goals is to achieve residential zero-net energy by 2020. Perhaps
                         the committee should set attainable goals rather than set inspirational goals.
                     ii. Achieving 25% implementation of Tier-2 Title-24 by 2008 may not be a
                         reachable goal. This goal needs to be reconsidered.



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                      iii. Goals for multi-family Tier-2 Title-24 need to be set as well.
                      iv. Ultimately all new homes need to meet or exceed Title-24 code by 2011.
                       v. The CPUC does not have the regulatory authority to create mandatory point of
                          sale requirements. But the CPUC should be involved with state ordinances to
                          improve requirements at point of sale. Third party rating systems can be used.
                      vi. R-30 and R-38 standards should apply to all existing homes. The market needs to
                          move the insulation of home to 35% by 2011, and 100% by 2015. New windows
                          must appear 40% of homes by 2011, and 100% by 2015.
                     vii. Establish similar goals for lighting, after deciding whether to create standards for
                          CFL or LED lights. Luminance per watt should be the standard of measure rather
                          than specifying a technology.
                     viii. The Huffman bill has been passed and residential indoor lighting energy
                           consumption must be reduced by 50%.
                      ix. Develop incentives for insulation and windows in the near term.
                       x. Plug loads standards need to be addressed.
                      xi. Create a workable Tier-2 standard and rating system for existing multi-family
                          homes.
             g. Small Systems
                       i. Three strategies for small systems include targeting:
                              1. Customers. Raise customer awareness with an education campaign and
                                 engage the industry as stakeholders. Utilizes rebate and incentive
                                 programs, flattening the load in the short term with further reductions by
                                 2030.
                                      a. Create a categorical rating system that makes it easy for consumers
                                         to understand technologies.
                                      b. Home office (PCs) & Home entertainment (TVs) energy use need
                                         to be addressed.
                              2. Behavior and systems modification. Create real-time monitoring of energy
                                 use and morph the behavior of electronics and plug loads.
                              3. Emerging Technologies. Roll out smart plugs, home automation, and
                                 solar charging. Continue to stimulate manufacturers’ research and
                                 development.

Action Items
 No     Description                                                       Responsible             Due by
 1
 2
 3



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New or Updated Issues
 New      Issue/Action      Impact     Status       Type          Owner      Due Date       Raised     Log Reference
 or                                                                                         By         #
 Upd
 ated
 *
                            l


* New Action (NA), New Issue (NI), Updated Action (UA), Updated Issue (UI)
** Log Reference Number Format <AA-BBBBBB-CCC##> where AA is the 2-letter sector code, BBBBBB is the date raised
in MMDDYY, CCC is the initials of the issue raiser, and ## is the sequence of the issues raised by that person on that date
(resets to 01 if it’s a new person or a new day) – See Issue Log tutorial for more details.




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