ATTACHMENT A by yaofenjin

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									R.08-07-011, A.08-06-004 COM/DGX/rbg

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                 ATTACHMENT A

  section                                                     page

   1. INTRODUCTION……………………………………………………………………… 1
   3. COMMERCIAL SECTOR……………………………………………………………. 31
   4. INDUSTRIAL SECTOR……………………………………………………………… 43
   5. AGRICULTURAL SECTOR…………………………………………………………. 51
   7. CODES AND STANDARDS………………………………………………………… 68
   10. MARKETING, EDUCATION AND OUTREACH………………………………….. 83
   11. RESEARCH AND TECHNOLOGY…………………………………………………. 87
   12. LOCAL GOVERNMENTS…………………………………………………………… 93
   13. ACKNOWLEDGMENTS………………………………………………………………102
   14. LIST OF ACRONYMS ……………………………………………………………….. 104
   15. ENDNOTES ………………………………………………………………………….. 109
 In October 2007, the California Public Utilities         & Electric Company (SDG&E) and Southern
 Commission (CPUC) created a framework to                 California Gas Company (SoCal) (collectively,
 make energy efficiency a way of life in California       “IOUs”) – and over 500 individuals and
 by refocusing ratepayer-funded energy efficiency         organizations working together over an eleven-
 programs on achieving long-term savings through          month period.2
 structural changes in the way Californians use
                                                          This Plan sets forth a roadmap for energy
                                                          efficiency in California through 2020 and
 The Commission recognized that California’s very         beyond. It articulates a long-term vision and
 ambitious energy efficiency goals require long-          goals for each economic sector and identifies
 term strategic planning to eliminate persistent          specific near-term, mid-term and long-term
 market barriers and effect lasting transformation in     strategies to assist in achieving those goals.
 the market for energy efficiency across the
                                                          Every participant in this process recognizes the
 economy. Thus, the Commission committed to
                                                          formidable task that lies ahead. Every
 prepare and adopt a long-term strategic plan for
                                                          participant also recognizes, however, that ever-
 California energy efficiency through 2020 and
                                                          increasing energy prices and the emerging
                                                          threat of climate change require that California
 This Energy Efficiency Strategic Plan (Plan) was         set the bar high and move forward quickly and
 developed through a collaborative process                purposefully to realize the full extent of efficiency
 involving the CPUC’s regulated utilities – Pacific       opportunities statewide and achieve deep
 Gas and Electric Company (PG&E), Southern                reductions in energy demand and usage.
 California Edison Company (SCE), San Diego Gas

 The 2005 CPUC and California Energy Commission’s
 (Energy Commission) Energy Action Plan II,3 declared:

 “[The] goal is for California’s energy to be adequate,
 affordable, technologically advanced, and
 environmentally-sound…[C]ost effective energy
 efficiency is the resource of first choice for meeting
 California’s energy needs. Energy efficiency is the
 least cost, most reliable, and most environmentally-
 sensitive resource, and minimizes our contribution to
 climate change.”

 The State’s “loading order” – first acknowledged         and implementing successful energy efficiency
 in Energy Action Plan I4 – places energy                 efforts. As the Energy Commission notes in its
 efficiency as California’s top priority resource.        2007 Integrated Energy Policy Report (IEPR)5:
 Under Public Utilities Code Section
 454.5(b)(9)(C) utilities are required to first meet      “Energy efficiency, which helped to flatten the
 their “unmet resource needs through all                  state’s per capita electricity use, will continue to
 available energy efficiency and demand                   be the keystone of California’s energy strategy.
 reduction resources that are cost effective,             California’s building and appliance standards
 reliable, and feasible.”                                 have saved consumers more than $56 billion in
 With three decades of leadership and innovation          electricity and natural gas costs since 1978 and
 in the public and private sectors, California leads      averted building 15 large power plants. It is
 the nation, and perhaps the world, in developing

INTRODUCTION                                                                                           SECTION I – PAGE 1
 estimated the current standards will save an                                    to grow, with statewide electricity consumption
 additional $23 billion by 2013.”                                                forecast to increase an average of 1.25 percent
                                                                                 per year over the next decade.7 In addition, the
                                                                                 state faces rapidly-escalating fuel prices.

                                                Source: A. Rosenfeld; CEC 2006
                     United States
                                                                                 The combination of these pressures poses
                                                                                 significant economic and social risks to

                                                                                 California. As both an emissions-free and low-
                                                                                 cost energy resource alternative, energy
                                                                                 efficiency is uniquely-poised to play a central
                                                                                 role in reconciling the current challenge. This
                                                                                 fact is acknowledged in virtually every
                                                                                 discussion of GHG abatement opportunities,
                                                                                 including McKinsey and Co.’s comprehensive
 The IOUs’ 2006-2008 energy efficiency portfolio                                 2007 review.8
 marks the single-largest energy efficiency
 campaign in U.S. history. In addition, individual                               Capitalizing on this opportunity in California will
 and corporate energy consumers; State and                                       require that we make energy efficiency
 local agencies; and publicly-owned utilities                                    investments an integral part of life and a
 continue to make significant investments to                                     “business as usual” choice for California market
 increase the efficient use of energy across                                     actors. It will require that we overcome market
 California.                                                                     barriers that have persisted over the course of
                                                                                 California’s 30-year history with energy
 However, with a growing population, increasing                                  efficiency policy, and it will demand the political
 demand for energy, and the pressing need to                                     will to continue making investments during times
 greenhouse gas (GHG) emissions in a rapid and                                   of economic stress to extend and to capture the
 low-cost manner, there has never been a more                                    full extent of energy efficiency potential
 important time for energy efficiency in California.                             obtainable across the state. However, in
 California is the second-largest GHG-emitting                                   succeeding, this initiative will bring benefits not
 state in the U.S. and electricity production is the                             only for California but will allow the state to
 second largest source of carbon emissions in                                    share its energy efficiency leadership, skills and
 California, accounting for some 32 percent of its                               experience in the national and international
 total, with gas use in businesses and homes                                     efforts to combat global warming through energy
 another 9 percent.6 Meanwhile California                                        efficiency.
 demand for electricity and natural gas continues

 1.2            POLICY CONTEXT
 The passage of the California Global Warming                                    GHG reduction targets, establishes a statewide
 Solutions Act of 2006 (AB 32)9 has amplified the                                target of at least 32,000 gigawatt hours and 800
 need for intensive energy efficiency efforts                                    million therms by 2020.11 If achieved, emission
 across California. The California Air Resources                                 reductions from these efficiency savings would
 Board’s (CARB) Draft Scoping Plan for AB 32                                     result in over 25 million metric tons of GHG
 implementation states that while, “California has                               emissions reductions, making them the second
 a long history of success in implementing                                       largest component in the State’s overall
 regulations and programs to encourage energy                                    emissions reduction program. The Draft Scoping
 efficiency… [it] will need to greatly expand those                              Plan recognizes this, stating that efficiency
 efforts to meet our greenhouse gas emission                                     provides an emission reduction opportunity for
 reduction goals.” 10                                                            California “on a scale second only to the Pavley
 The Draft Scoping Plan, which offers preliminary
 indication of how the State plans to achieve its

INTRODUCTION                                                                                                                SECTION I – PAGE 2
 AB 32 and other pivotal legislation and policy in     research, including the Commercial Buildings
 California — such as the Energy Action Plan II,       Initiative described below.13
 AB 2021 (which involves setting statewide
                                                       This Plan seeks to provide a strategic roadmap for
 energy efficiency goals), the Low-Income
                                                       integrating energy efficiency efforts and achieving
 Energy Efficiency statutes, the Governor’s
                                                       the aggressive goals the State has set for itself in
 Green Building Executive Order12, and the 2007
                                                       a number of venues. It aims to bring together
 IEPR — create an environment where energy
                                                       critical participants beyond the CPUC and the
 efficiency efforts must not only continue to thrive
                                                       IOUs, including publicly owned utilities, the
 but engage at an unprecedented level. This Plan
                                                       financial and building industries, cities and
 sets forth a roadmap for the intensified effort
                                                       counties, other State agencies, and businesses
 required to meet this challenge.
                                                       and consumers, to work together toward common
 The Plan also builds on the impact of recent          energy efficiency goals. Therefore, the strategies
 efficiency-specific legislation, such as AB 1109      and goals are not restricted by geographical,
 (Huffman 2007), which requires defined                jurisdictional, regulatory, or political boundaries.
 reductions in energy usage for lighting and the       To achieve these goals, all actors must work
 Federal Energy Independence and Security Act          collaboratively over the long-term to leverage all
 of 2007, which contains many provisions for new       resources available to fundamentally transform the
 minimum efficiency standards and new                  way Californians use energy at home and at work.

 The CPUC’s October 2007 decision (D.07-01-            technologies and practice in each of the
 032) directed that “a key element of the              customer end use sectors (e.g., Commercial,
 Strategic Plan would be that it articulates how       Industrial, Residential, Agricultural). Likewise,
 energy efficiency programs are or will be             the Plan describes the market transformation
 designed with the goal of transitioning to either     efforts necessary in each of the cross-cutting
 the marketplace without ratepayer subsidies, or       areas discussed (e.g., Codes and Standards,
 codes and standards.”14                               Workforce Education and Training, Marketing
                                                       Education and Outreach, and Research and
 The CPUC also stated that the Plan would
 incorporate the market transformation goal
 described above and “develop milestones to            As early as 1998, the Commission has defined
 measure progress towards that goal,” including        market transformation as:
 the development of a “targeted timeframe for
                                                       “Long-lasting sustainable changes in the
 such market transition and the process for
                                                       structure or functioning of a market achieved by
 tracking progress so that it is clear at what point
                                                       reducing barriers to the adoption of energy
 a program has made a successful transition or
                                                       efficiency measures to the point where further
 conversely, is having problems.”15
                                                       publicly-funded intervention is no longer
 This Plan fulfills the Commission goal by having      appropriate in that specific market.”16
 market transformation as the unifying objective
                                                       In theory, utility efficiency programs over the
 of the Plan. However, due to time constraints,
                                                       past thirty years have been designed either to
 this initial Plan does not identify the process to
                                                       encourage suppliers and manufacturers to sell
 track progress towards defined end points for
                                                       efficiency products or services to “push” the
 program efforts, as envisioned in the October
                                                       market, or to encourage consumers to buy these
 decision. The CPUC will continue to make
                                                       products or services to “pull” the market. Typical
 progress in this area and a key priority for the
                                                       utility rebate programs have aimed to increase
 first update of this Plan will be the inclusion of
                                                       the market penetration of energy-efficient
 such timeframes, end point definitions, and
                                                       products along a continuum until market
 progress metrics.
                                                       acceptance reached sufficient levels for the
 The Plan seeks to effect substantial and              measure to be incorporated into codes and
 sustained progress towards more efficient

INTRODUCTION                                                                                       SECTION I – PAGE 3
 standards or used in the marketplace without           measures, associated savings must be fairly
 ratepayer subsidies.                                   accounted for in attribution methodologies.
 In practice, however, utility programs have            The CPUC also recognizes the lingering need to
 tended towards measures which produce readily          develop appropriate rules and guidelines for
 quantified, low-cost, near-term savings which          determining when market-transformation has
 offer the opportunity to “buy” load reduction in       occurred and publicly-funded intervention is no
 easy well-packaged measures. There has been            longer appropriate, so as to define an end-point
 little incentive for utilities to engage in measures   for strategies and set the course for new
 with a longer-term orientation – those very            programs and goals.
 measures which produce meaningful market
                                                        Transformation is an evolutionary process, as
                                                        markets for a given end-use are not transformed
 This Plan seeks to move utilities, the CPUC, and       just once, but continuously. Understanding
 other stakeholders beyond a focus on short-term        when a technology promoted in utility programs
 energy efficiency activities into a more sustained     has become established within the mainstream
 long-term, market transformation strategic focus.      market or incorporated into codes and standards
                                                        will help target when new programs are needed
 By re-emphasizing the market transformation
                                                        to encourage the next generation of energy
 goal, we do not discount the benefits of short-
                                                        efficiency technologies.
 term measures for energy savings. Utility
 portfolios must contain an appropriate mix of          Our October 2007 decision recognized this in
 short and longer term energy savings. However,         directing the utilities’ proposed 2009-2011
 short-term programs such as the replacement of         portfolios to identify “an ‘end game’ for each
 incandescent light bulbs with compact                  technology or practice that transforms building,
 fluorescent light bulbs must be accompanied by         purchasing, and the use decisions to become
 programs to encourage new technologies in              either ‘standard practice’, or incorporated into
 lighting, consumer education on the benefits of        minimum codes and standards.”17
 energy efficient lighting and conservation, and
                                                        As an example, the Northeast Energy Efficiency
 advocacy for higher codes and standards for
                                                        Partnership (NEEP) sets market transformation
 lighting, as well as defined metrics for market
                                                        goals for its programs, and then measures
                                                        progress towards the goals by determining the
 Additionally, the Plan recognizes that the             extent to which various barriers have been
 process of market transformation cannot and            overcome in a given market. Such barrier criteria
 should not be driven by utility programs alone.        include: consumer awareness, product/service
 While utilities will play a continued role in          availability, pricing, purchasing behavior,
 stimulating market transformation across               customer satisfaction, and future customer
 sectors, each of the cross-cutting areas               actions. Measures and programs that have
 described in this Plan represents an avenue            achieved their goals are phased out of utility
 where non-utility actors may well be better            energy efficiency portfolios to make room for
 positioned to drive the “push” of new                  new measures.
 technologies to market, or the “pull” for
                                                        This Plan recognizes that work remains in
 customers and business to adopt available
                                                        establishing an administrative structure for utility
 efficiency technologies or practices.
                                                        programs that encourages aggressive
 The CPUC recognizes its responsibility to              allocations of portfolio dollars to market
 examine changes to the policy rules on counting        transformational initiatives. The Plan’s content,
 savings from IOU programs to attribute gains           however, is oriented towards charting a
 from market transformation and long-term               programmatic course that embraces the goals
 strategies resulting from IOU actions. In order to     and strategies of market transformation by
 ensure utilities are motivated to devote portfolio     seeking to achieve significant transformative
 dollars towards market transformation                  progress in all sectors by 2020 or earlier.

INTRODUCTION                                                                                        SECTION I – PAGE 4
 The market transformation strategies covered in the Plan are built upon one or more of the following
 policy tools employed to “push” or “pull” more efficient products or practices to market.

 Policy Tools for Market Transformation
   Incentives include rebates; innovative or discounted financing; and/or non-financial support to
   consumers who implement energy efficiency practices and measures that go beyond current practice
   or mandates. Incentives are the “carrots” that help pull consumers into choosing the efficient option.

   Codes and Standards mandate maximum energy consumption levels for buildings, appliances and/or
   equipment, thereby removing the less efficient choices from the marketplace (some standards are not
   legally mandated). These are the “sticks” that push builders and manufacturers.
   Education and Information inform consumers and others about energy use and opportunities
   associated with energy efficiency. They are provided by a wide variety of marketing, education and
   outreach techniques and often include labeling; benchmarking; internet-based comparisons;
   professional and trade materials; school curricula; peer-to-peer exchanges; and other resources.
   Technical Assistance helps to ensure that knowledge barriers on the part of customers, installers or
   retailers are not unnecessarily hampering the progress of critical efficiency initiatives.
   Emerging Technologies rely on research, development, demonstration and/or deployment to move
   energy-efficient products and developments from the laboratory into the commercial marketplace.

 In order to guide market transformation in a number of key sectors, this Plan embraces four specific
 programmatic goals, known as the “Big Bold Energy Efficiency Strategies,” established by the CPUC in
 D.07-10-032 and D.07-12-051.

 “Big Bold” Energy Efficiency Strategies
 1. All new residential construction in California will be zero net energy by 20207;
 2. All new commercial construction in California will be zero net energy by 2030;
 3. Heating, Ventilation and Air Conditioning (HVAC) will be transformed to ensure that its energy
    performance is optimal for California’s climate; and
 4. All eligible low-income customers will have a meaningful opportunity to participate in the LIEE
    program and will be provided all cost effective energy efficiency measures in their residences by

INTRODUCTION                                                                                         SECTION I – PAGE 5
 The CPUC’s 2007 Decision (07-10-032) outlined           cross-cutting sector. In January, these plans
 the key goals, content, and development                 (“Convener Reports”) were provided to the IOUs
 process for this first California Energy Efficiency     to inform their strategic planning efforts.
 Strategic Plan. During November and
                                                         As required by the CPUC, the IOUs filed a draft
 December 2007 and January 2008, working
                                                         Plan on February 8, 2008. On March 6, 2008,
 groups for four “vertical” market sectors —
                                                         the IOUs filed a revised draft Plan,
 residential, including low-income, commercial,
                                                         supplementing the February draft pursuant to
 industrial, and agricultural — and seven cross-
                                                         Commission direction. Three stakeholder
 cutting areas — Heating, Ventilation and Air
                                                         workshops were then held in San Diego, Los
 Conditioning (HVAC) systems; Demand Side
                                                         Angeles, and San Francisco.18
 Management (DSM) Coordination and
 Integration; Workforce Education and Training           All public comments, workshop transcripts, IOU
 (WET); Marketing Education and Outreach                 and CPUC staff materials, and convener reports
 (ME&O); Research and Technology; Codes and              have been archived and are available on the
 Standards; and Local Governments — held 36              strategic planning website:
 public stakeholder workshops.                 
 The objective of these meetings was to develop
 an action plan for each market sector and each

 Two limitations to this 2008 Plan should be noted:

 1. Because it is the initial energy efficiency          2. This Plan does not specifically address three
     strategic plan—and due to time and other                important elements of energy efficiency.
     constraints—this Plan has not undergone                 These are the evaluation and measurement
     cost-benefit analysis. However, the                     and verification of energy savings;
     efficiency activities envisioned in this plan           transportation; and the water-energy
     subject to the Commission’s jurisdiction will           “nexus.” The reasons for these exclusions
     only be funded by ratepayers as part of cost-           are two-fold: first, there was no specific input
     effective portfolios. Similarly, the strategies         provided by the working groups on these
     and actions have not been fully evaluated               topics; and, second, various State agencies
     for prioritization or for budget and resource-          are covering these issues in separate
     allocation decisions. Accordingly, the                  processes. Future strategic planning cycles
     strategies and actions described in this Plan           are likely to address these issues.
     will be updated as conditions change and
     new experience and information is obtained.

 Many of the strategies in the Plan do not require changes in State or Federal law or the regulations of
 various agencies. Specifically, most of the activities to be implemented in the near term (approximately
 2009-2011) are expected to be feasible under current law and the rules of the CPUC and other agencies.
 However, there are longer term elements of the Plan for which changes in law and/or agency rules and
 policies would be useful—or even essential—to achieve the desired cost-effective energy efficiency over
 the 2009-2020 period.

INTRODUCTION                                                                                         SECTION I – PAGE 6
 This Plan is a dynamic document that will be          to continue the momentum and build the
 regularly updated to reflect past successes,          sustained velocity needed to achieve the goals
 failures, and lessons learned and to adjust the       expressed in this Plan.
 visions, goals and strategies accordingly. Given
                                                       In the short term, this process will be advanced
 the urgency of the need to achieve the AB 32
                                                       through the establishment of goal and/or
 goals, it is necessary to quickly and efficiently
                                                       strategy-specific task forces, to be coordinated
 complete foundational activities such as studies,
                                                       by the CPUC. Over the longer term, there is
 data collection and pilot programs and to move
                                                       widespread stakeholder support for coordination
 just as quickly to implement actual programs
                                                       at a statewide level by an entity with a
 and deliver real results in the near term.
                                                       membership and mandate better suited to the
 The process that started during the fall of 2007      multi-jurisdictional scope of the strategies
 was a tremendous and highly productive effort         articulated in this Plan. Such an entity would
 by the utilities, CPUC, and the Energy                build on the collaboration initiated by the
 Commission working with a large number of             strategic planning process thus far and allow for
 stakeholders from all sectors of the California       enhanced participation by all stakeholders.
 economy. This process must continue in order

 The next planning cycle will include:

    Incorporating data collection efforts, including      Engaging even more key stakeholders prior
    market assessment and market potential                to initiating the planning cycle and
    studies, more directly in this and other              cooperatively developing roles and a process
    planning processes, such as the CEC IEPR              that increases information exchange and
    and the utilities’ long-term procurement              participation of these stakeholders.
    processes.                                            Conducting more widespread public
                                                          workshops to enable these stakeholders to
    Aligning this planning effort with related
                                                          provide planning input and to vet planning
    statewide long-term resource plans, such as
    those associated with water, land use, and
    greenhouse gas mitigation.                            Central to this expanded process will be
                                                          participation by additional State agencies,
    Evaluating performance with respect to the
                                                          which may wish to co-sponsor various task
    goals and strategies established in the
                                                          forces—for example, in Workforce Education
    current Plan, and market transformation
                                                          and Training or the Agricultural Sector and
    criteria in particular.
                                                          obtaining commitments from key participants
                                                          willing to fund, lead, or implement strategies.

INTRODUCTION                                                                                     SECTION I – PAGE 7


 2.1.1 VISION
 Residential energy use will be transformed to ultra-high levels of energy efficiency resulting in
 Zero Net Energy new buildings by 2020. All cost-effective potential for energy efficiency, demand
 response and clean energy production will be routinely realized for all dwellings on a fully
 integrated, site-specific basis.

 2.1.2 PROFILE
                                                     Distribution of California Household by Home Ownership
                                                                      (Source: RASS 2003, HENS 2004)
 In 2008, energy demand for California’s 12.6
 million households was over 25,000 MW.
 The residential sector represents                 50%
 approximately 32% of total state electricity      40%
 consumption and 36% of its total natural gas      30%
 consumption. Electricity demand is expected
                                         19        20%
 to grow to almost 31,000 MW by 2018.
 Approximately one-third of all households                       Own                     Rent                     Rent
 live in multi-family structures and two-thirds                                 (Individually Metered)      (Master Metered)
 in single family homes. The balance of
                                                         Distribution of California Household by Dwelling Type
 renters to homeowners is about 42% to
                                                                       (Source: RASS 2003, HENS 2004)
 58%, respectively. Most or all of these          70%
 households qualify for utility energy            60%
 efficiency programs targeting residential
              20                                  50%
 customers.       About one-third
 (approximately 4 million) of these               40%
 households qualify for additional low income     30%
 energy efficiency (LIEE) programs extended       20%
 to households with annual incomes less
 than or equal to 200% of Federal Poverty
              21                                   0%
                                                             Single        Multi-family      Multi-family         Mobile
                                                             Family        (2-4 Units)       (5+ Units)           Home

                                                                                  % of All CA
                                                                                  % of Low Income

RESIDENTIAL AND LOW INCOME                                                                                      SECTION 2 – PAGE 8
 The utilities have responded to the diverse                                                       Energy Commission’s building and appliance
 needs of California’s residential sector by                                                       codes and standards. The utilities also have
 offering a wide range of energy efficiency                                                        introduced a number of innovative whole-house
 programs that impact every level of the                                                           or community-wide programs such as the SCE
 residential market, including rebates for efficient                                               Sustainable Communities program which targets
 products, such as lighting, air conditioners, and                                                 new residential developments and the Design
 refrigerators; training and education to                                                          for Comfort Program that provides efficiency
 architects, engineers, building managers and                                                      assistance to affordable housing developments
 building inspectors; and work to enhance the                                                      that are undergoing renovation.

                        Statewide Average Electricity Use Per Household
                                                                                                                         Statewide Average Natural Gas Use Per Household
                                    (5,914 kWh per Household)
                                                                                               Pools, Spas, Misc. – 3%
 Lighting (Estimate)*                                                 Water Heating – 3%
                                                                      Miscellaneous 11%                    Dryer – 3%
              – 22%                                                   Miscellaneous – 11%
                                                                      Water Heating – 3%               Cooking – 22%
                                                                      Space Heating – 4%

                                                                      Laundry – 5%
                                                                                                                                                                           Space Heating – 44%
   Refrigerators and                                                  Dishwashing and
   Freezers – 19%                                                     Cooking – 5%
                                                                      Pools and Spas – 6%        Water Heating – 44%
        TV, PC, and                                                   Air Conditioning – 10%
   Office Equipment
             – 15%

 Over the past two utility program cycles                                                          Commission’s Title 20 regulations. The Energy
 (2004/2005 and 2006/2008), the utilities have                                                     Commission anticipates issuing the first phase
 focused heavily on residential lighting, which                                                    of the standards by January 1, 2010.
 accounts for the largest electricity end use in the
                                                                                                   These changes in the lighting market provide us
 residential sector. As a result, the bulk of
                                                                                                   with new opportunities to move the utilities’
 residential efficiency savings has come from
                                                                                                   residential energy efficiency resources from
 lighting programs such as measures that
                                                                                                   mass-market light bulb promotions and
 encourage the use of CFL bulbs. In the past few
                                                                                                   giveaways to new lighting technologies and
 years, the CFL market has undergone a major
                                                                                                   other innovative programs that focus on whole-
 transformation, as evidenced by the ubiquity of
                                                                                                   building efficiency measures.
 CFL products in the retail market and recent
 energy measurement and verification studies.                                                      Likewise, the strategies set forth in this Plan will
                                                                                                   create longer-term savings from the built
 A major transformation of the lighting market will
                                                                                                   environment with a goal of continual
 be completed through the passage and
                                                                                                   incorporation of advances into codes and
 implementation of AB 1109, the 2007 California
                                                22                                                 standards or the private marketplace. The
 Lighting Efficiency and Toxics Reduction Act.
                                                                                                   2009-2011 IOU program cycle will lay the
 AB 1109 requires a 50% increase in efficiency
                                                                                                   foundation for aggressive, long-term strategies
 for residential general service lighting by 2018
                                                                                                   to change the way residential buildings are
 through phased increases in the Energy
                                                                                                   constructed, used and maintained.

RESIDENTIAL AND LOW INCOME                                                                                                                                                     SECTION 2 – PAGE 9
 2.1.3 GOALS
 Goal                                                      Goal Results
 1. New construction will reach “zero net energy” (ZNE)    By 2011, 50% of new homes will surpass 2005 Title 24
   performance (including clean, onsite distributed        energy efficiency standards (Title 24) by 35%; 10% will
   generation) for all new single and multi-family homes   surpass 2005 Title 24 standards by 55%.
   by 2020.                                                By 2015, 90% will surpass 2005 Title 24 standards by 35%.
                                                           By 2020, all new homes are ZNE.

 2. Home buyers, owners and renovators will implement a    Energy consumption in existing homes will be reduced by
   whole-house approach to energy consumption that will    20% by 2015 and 40% by 2020 through universal demand
   guide their purchase and use of existing and new        for highly efficient homes and products.
   homes, home equipment (e.g., HVAC systems),
   household appliances, lighting, and “plug load”
 3. Plug loads will be managed by developing consumer      Plug loads will grow at a slower rate and then decline
    electronics and appliances that use less energy and    through technological innovation spurred by market
    provide tools to enable customers to understand and    transformation and customer demand for energy efficient
    manage their energy demand.                            products.
 4. The residential lighting industry will undergo         Utilities will begin to phase traditional mass market CFL bulb
    substantial transformation through the deployment of   promotions and giveaways out of program portfolios and shift
    high-efficiency and high-performance lighting          focus toward new lighting technologies and other innovative
    technologies, supported by state and national codes    programs that focus on lasting energy savings and improved
    and standards.                                         consumer uptake.

 Transformation of markets for new multi family             In addition, the United States Department of
 homes can be achieved through strategies                   Energy (DOE) and the United States
 targeting the Commercial or Residential sectors            Environmental Protection Agency (EPA) play
 or a combination of both since rental buildings            critical roles in residential energy efficiency
 are commercial enterprises as well as dwelling             efforts. Through the EnergyStar program, they
 units. In this first Plan, with the exception of the       have established internationally-recognized
 approximately 50 percent of LIEE-eligible                  standards for efficient consumer products,
 households living in multi-family housing, there           informing customer choice and driving market
 is no specific focus on strategies to upgrade              transformation.
 efficiency in existing multi-family dwellings. This
                                                            Extensive R&D efforts and partnership programs
 is a recognized shortcoming and strategies for
                                                            will push the market further. For technological
 this market must be addressed in greater detail
                                                            advances in buildings, appliances and plug
 in the next iteration of this Plan.
                                                            loads, the IOU’s Emerging Technologies
 The leadership and active participation of many            program and the Energy Commission’s
 organizations are also necessary to achieve the            ratepayer-funded Public Interest Energy
 vision for the residential sector. The Energy              Research (PIER) program must work
 Commission must continue to lead the efforts to            cooperatively with the national laboratories and
 continually enhance and expand the building                private industry to achieve the advances
 and appliance codes with active technical                  envisioned in this Plan.
 support and expertise from the IOUs, national
 laboratories, and the building industry.

RESIDENTIAL AND LOW INCOME                                                                                   SECTION 2 – PAGE 10
 The market transformation envisioned by the residential sector Vision and Goals involves changing both
 the supply chain of products and services and the behaviors that residential energy consumers rely on to
 use energy efficiently. The four interrelated residential Goals are designed to achieve this transformation
 through the following themes:
                                                           public education campaign and targeted
 1. Building Innovation: Drive continual
                                                           incentive programs.
 advances in technologies in the building
 envelope, including building materials and                4. Statewide Solutions: Coordinate and
 systems, construction methods, distributed                collaborate with State agencies and private
 generation, advanced metering infrastructure,             organizations to advance research and
 and building design, and incorporate technology           development and to align State efforts on
 advances into codes and standards.                        buildings.
 2. Comprehensive Solutions: Develop, offer                5. Financing: Work with the financial
 and promote comprehensive solutions for single            community to develop innovative and affordable
 and multi-family buildings, including energy              financing options for energy efficient buildings
 efficiency measures, demand management tools              and retrofits.
 and real-time information, and clean distributed
                                                           6. Codes and Standards: Adopt aggressive
 generation options in order to maximize
                                                           and progressive minimum energy codes and
 economic decision-making and energy savings.
                                                           standards for buildings and plug loads, effective
 3. Customer Demand: Create high levels of                 code compliance and enforcement, and parallel,
 customer demand for progressively more                    tiered voluntary energy efficiency standards that
 efficient homes through a coordinated statewide           pull the market along and set a higher bar for
                                                           subsequent standards.


 While the overall mission for the residential             Certain strategies in the residential market (e.g.,
 sector is ambitious, these goals and strategies           marketing, education and outreach) are part of
 are interrelated and many of the efforts to reach         larger, cross-cutting strategies. As a
 one goal will contribute to the achievement of a          consequence, the strategies described below
 different goal; for example, success in Goal 3            contain a certain amount of repetition and cross-
 (Plug Load) will contribute to the success of             referencing; however, each strategy will require
 Goal 1 (ZNE Homes) and Goal 2 (Whole House                refinements to accomplish the specific goal for
 Performance). Improvements in building                    target markets. This is consistent with our
 standards resulting from improvements in                  overall goal of encouraging integrated energy
 technologies (Goal 1) will promote efficiencies           efficiency programs that recognize and leverage
 from existing home renovations and                        the benefits of related projects, while at the
 improvements (Goal 2).                                    same time aligning specific strategies with the
                                                           requirement of each goal.

 Goal 1: Deliver Zero Net Energy New Homes By 2020.

 Goal 1 envisions a continual and dramatic                 energy homes based on new technologies, new
 increase in the demand for and supply of lower            building principles, and policy support to achieve

RESIDENTIAL AND LOW INCOME                                                                          SECTION 2 – PAGE 11
 a statewide standard of zero net energy (ZNE)         As part of this effort, California will establish a
 for all new homes built in 2020.                     “Path to Zero” campaign sponsored by the
                                                      CPUC, State agencies, utilities, the building
 A ZNE home will employ a combination of              industry, and others. This campaign will feature
 energy efficiency design features, efficient         real-world experience and data on emerging
 appliances, clean distributed generation, and        technologies, practices, and designs that deliver
 advanced energy management systems to result         zero net and ultra-low energy buildings,
 in no net purchases of energy from the grid.24 A     alongside mechanisms to demonstrate their
 ZNE building must also consider embodied             effectiveness and create demand in the
 energy – the quantity of energy required to          marketplace for high-performance buildings
 manufacture and supply to the point of use the       coordinated with marketing tactics and financial
 materials utilized for its building. Several green   incentives. A first step will be convening a task
 building standards take embodied energy into         force of key stakeholders committed to zero net
 account.25                                           energy buildings.
 Interim milestones for this programmatic goal        California’s Title 24 energy code should continue
 are that by 2011, 50% of new homes will be           to be progressively updated and tightened on a
 35% more efficient than 2005 Title 24 standards      triennial basis along a planned trajectory leading
 (coincident with the Energy Commission’s Tier II     to achievement of goals for the year 2020.
 standard for incentives under the New Solar          Mandatory standards of Title 24 should be linked
 Homes Partnership26) and 10% will be 55%             to one or two tiers of voluntary, beyond-code
 more efficient; and that by 2015, 90% of homes       standards such that the single mandatory and
 will surpass 2005 Title 24 standards by 35%.         one or two voluntary levels comprise a bronze-
                                                      silver-gold approach to residential efficiency
 The “Big / Bold” goal of achieving ZNE for 100%      performance. Each Title 24 Code update will
 of new residential construction and the              achieve a stepped pattern of tightening
 supporting interim goals are extremely               standards toward what had been the higher
 aggressive. Accordingly, we characterize them        voluntary level, dropping the previous minimum
 in this first Plan as “reach” and “programmatic”     mandatory (i.e., 2011’s gold becomes 2014’s
 goals. They are intended to capture the              silver and 2017’s minimum mandatory). These
 imagination and spark the enthusiasm of all who      voluntary silver-gold tiers could be used as
 participate in transforming residential new          reference points for ”reach” building policies and
 construction to ultra-high levels of energy          programs, local ordinances, and utility
 efficiency.                                          incentives.

                                                                   Silver plus:
                                                                   • Zero Net Energy Buildings
                                                                   • Clean Energy Generation
                                                                   • New Technologies
                                                                   • Integrated Design
                                                                   • Transaction Mandates
   Stringency/Energy Savings

                                                                   Bronze plus:
                                                                   • Higher Voluntary Energy Efficiency
                                                                   • Local Government Push
                                                                   • Labeling
                                                                   • Incentives & Financing
                                                                   • Broader Energy End-use Focus

                                                                   • Minimum T-24 Standards
                                                                   • Strong Enforcement
                                                                   • Building Energy Efficiency

RESIDENTIAL AND LOW INCOME                                                                          SECTION 2 – PAGE 12
 In July 2008, California’s Building Standards         The Energy Commission is the logical candidate
 Commission (BSC), adopted a first-ever set of         to lead the codes and standards effort along with
 Green Building Standards that apply to                the State Buildings Standards Commission and
 commercial and residential construction               the Department of Housing and Community
 statewide.27 The standards will take effect on a      Development. Near-term, the Energy
 voluntary basis in 2009, and will likely be           Commission could collaborate with these
 adopted as mandatory standards by 2012. In            agencies to publish a provisional, performance-
 addition, in August, the City and County of San       based “reach code” reference standard for
 Francisco adopted a Green Building ordinance          “beyond code” residential construction in
 requiring newly constructed commercial                California. This would be advisory and create a
 buildings over 5,000 sq ft, residential buildings     reference from which to gauge further
 over 75 feet in height, and renovations on            improvements.
 buildings over 25,000 sq ft to meet LEED and
                                                       The process could coordinate with the Energy
 other green building certifications. 28 Similarly,
                                                       Commission’s Public Interest Energy Research
 the City of Los Angeles enacted its own Green
                                                       (PIER) and other research organizations
 Building Ordinance in April 2008, which takes
                                                       (Lawrence Berkeley National Laboratory (LBNL),
 affect later in 2008 and 2009. It establishes a
                                                       National Renewable Energy Laboratory (NREL),
 series of requirements and incentives for
                                                       Building Industry Research Alliance (BIRA) to
 developers to meet LEED standards and is
                                                       assess and provide the foundation for
 expected to affect at least 7.5 million square feet
                                                       recommendations, including monitoring and
 each year.29
                                                       measurement approaches.
 The emergence of sustainable building policies
                                                       This Goal also requires a major transformation
 and ordinances are an indication that many local
                                                       in the construction, design and usage of
 governments desire building practices that go
                                                       residences through a combination of mandates
 beyond State minimum building codes. As more
                                                       and voluntary actions. The technical feasibility
 local governments enact codes that are more
                                                       of ZNE homes is in early stages of
 stringent than State codes, a patchwork of
                                                       demonstration through the pioneering efforts of
 different and potentially conflicting building
                                                       SMUD, NREL, and home designers and
 requirements is arising. As requirements
                                                       builders. DOE’s Building America effort, for
 become more varied across geography,
                                                       instance, has put ZNE research to work in
 developers and particularly production home
                                                       homes across 34 states. These demonstrations
 builders may have difficulty designing and
                                                       also provide a forum for continual research on
 building major developments consistent with
                                                       optimizing performance of homes with ZNE
 both State and local codes.
 Accordingly, Strategy 2 requires coordination of
                                                       Several ZNE residential projects, such as
 local government building codes and
                                                       SMUD’s project in Roseville, CA, are already
 development policies to facilitate common
                                                       underway and others are in the planning or
 approaches to the adoption and rapid evolution
                                                       conceptual phase. In the near term, the utilities
 of highly energy efficient technologies and
                                                       will aggressively promote additional proof of
 techniques in new construction statewide.
                                                       concept pilots, including affordable housing
 Coordination also will advance testing of
                                                       elements in these pilots.
 sustainable building technologies and
 techniques in different operating environments        Significant additional resources will be required
 to provide a stronger basis for progressive           to scale these efforts up to for full-scale
 increases in the stringency and coverage of           production and sale at affordable prices. In an
 energy efficiency standards within State building     effort to marshal private, public, academic,
 codes.                                                corporate, and entrepreneurial resources
                                                       towards this objective, a prominent philanthropy

RESIDENTIAL AND LOW INCOME                                                                     SECTION 2 – PAGE 13
 organization will soon announce an Energy Free        family affordable housing in urban infill areas
 Home Challenge: to achieve net zero energy at         with access to public transportation.
 net zero cost. Launching in Fall 2008, the prize
                                                       Finally, innovative financing solutions, such as
 will award $20 million in cash prizes both for
                                                       loans that remain with the property through
 enabling technology innovation and whole-home
                                                       owner-occupant turnover and energy efficient
                                                       mortgages, will be essential in allowing builders
 California will need new, cost-effective              and owners to leverage the cost-savings
 technologies for home building materials and          inherent in ZNE buildings into investment costs.
 fabrication techniques, and “smarter” home            Furthermore, finance mechanisms must fully
 operating systems, such as visual displays of         reflect the savings in monthly operating costs
 real-time (or near real-time) energy use. In          from low energy homes. New programs must
 addition, the energy efficiencies of household        leverage and build upon financing options
 equipment and appliances must increase. (In           available from private markets and other
 this regard, see Strategies 2 and 3 below and         government initiatives. To this end, the CPUC
 the Heating, Ventilation & Air Conditioning           will establish a Finance Task Force for the
 Chapter.) These innovations must be                   commercial and residential sectors made up of
 accompanied by a strong education, outreach           members of the financial/investment industries;
 and marketing effort to increase consumer             building and developer community; and, State,
 demand for efficient homes, including the use of      Federal and local governments to identify
 energy or carbon benchmarks and labels.               existing and additional needed tools,
                                                       instruments, and information necessary to
 Affordability is a key consideration in California,
                                                       attract greater participation of capital markets in
 where the cost of housing is a serious, long-term
                                                       funding efficiency transactions. The Task Force
 issue.30 A key element of this Goal is to
                                                       will identify actors to develop innovative and
 develop ZNE example homes across the
                                                       effective financing tools especially suited for
 spectrum of housing options, including multi-
                                                       ZNE and ultra low-energy buildings.

RESIDENTIAL AND LOW INCOME                                                                       SECTION 2 – PAGE 14
                                                   Goal 1: Zero Net Energy Homes

                                                  Implementation Plan and Timeline

                                Non-CPUC                   Near Term                   Mid-Term                   Long Term
                                 Partners                 2009 – 2011                 2012 2015                   2016 2020
1-1: Drive continual          Energy                  50% of new homes             90% of new homes          100% of new homes
advances in technologies      Commission              exceed 2005 Title 24         exceed Title 24 by 35%    exceed Title 24 by 35%
in the building envelope,     (PIER)                  standards by 35%             40% of new homes          90% of new homes exceed
including building            Utilities               10% of new homes             exceed Title 24 by 55%    Title 24 by 55%
materials and systems,                                exceed 2005 Title 24
                              DOE, national
construction methods,                                 standards by 55%
distributed generation, and
building design.              Production home         Develop and participate in   Develop and               Develop and implement
                              builders and            pilot projects in specific   implement next            next generation of pilot
                              building industry       climates to prove            generation of pilot       projects; continually monitor
                              organizations           technologies for next        projects; continually     performance of pilots to
                                                      generation of lower and      monitor performance of    provide feedback for next
                                                      zero energy homes,           pilots to provide         level of design and
                                                      including affordable         feedback for next level   development of
                                                      housing projects.            of design and             technologies.
                                                      Continually monitor          development of
                                                      performance of pilot         technologies.
                                                      projects to provide
                                                      feedback for next level of
                                                      design and development
                                                      of technologies.
                                                      Advance technological        Ongoing                   Ongoing
                                                      innovation through
                                                      collaboration of Energy
                                                      Commission PIER and
                                                      Emerging Technologies
                                                      Programs, LBNL, NREL,
                                                      Utilities, CBIA, and other
                                                      appropriate organizations.
                                                      Assess existing              Ongoing                   Ongoing
                                                      technologies and identify
                                                      areas for strategic
                                                      involvement in research
                                                      and development.

RESIDENTIAL AND LOW INCOME                                                                                                SECTION 2 – PAGE 15
                                                    Implementation Plan and Timeline

                                 Non-CPUC                    Near Term                   Mid-Term                    Long Term
                                  Partners                  2009 – 2011                 2012 2015                    2016 2020
1-2: Continual                Energy                    Map a trajectory for Title   Fine-tune and revise       Fine-tune and revise the
coordination and              Commission                24 mandatory and             the trajectory based on    trajectory based on the
cooperation between the       Utilities                 voluntary standard(s)        the changing energy        changing energy efficiency
Energy Commission and                                   through 2020.                efficiency state-of-the-   state-of-the-art.
others to progressively                                 Progressively make           art.                       Progressively make energy
increase Title 24 building                              energy efficiency            Progressively make         efficiency advances
standards and Title 20        California Building
                              Standards                 advances permanent by        energy efficiency          permanent by raising Title
appliance standards                                     raising Title 24 mandatory   advances permanent         24 mandatory standards in
consistent with the interim   Commission
                                                        standards in 2011            by raising Title 24        2017 and to ZNE by 2020
and long-term goals set                                 consistent with the          mandatory standards in     consistent with the
forth in this Plan.                                     trajectory.                  2014 consistent with       trajectory.
                                                        Progressively advance        the trajectory.            Progressively advance Title
                                                        Title 24 voluntary,          Progressively advance      24 voluntary, “beyond code”
                                                        “beyond code”                Title 24 voluntary,        standard(s) in step with
                                                        standard(s) and ratings      “beyond code”              mandatory standards in
                                                        systems in step with         standard(s) in step with   2017 and 2020.
                                                        changes to the mandatory     mandatory standards in
                                                        standards.                   2011 and 2014.
1-3: Coordinate and           Energy                    Identify and resolve         Monitor success of         Monitor success of
Support “Reach” Building      Commission                conflicts or                 coordination and           coordination and resolve
Standards                     Utilities                 inconsistencies between      resolve new issues as      new issues as they arise.
                              Local                     Title 24 and local “green”   they arise.
                              governments               building ordinances or
                                                        other standards.
                              California Building
                              Standards                 Establish policies and
                              Commission                procedures for statewide
                                                        coordination of local
                              Building Industry         building standards that
                                                        are acceptable to local
                                                        Provide technical support
                                                        for the development and
                                                        implementation of reach
                                                        standards through
                                                        partnerships with local
1-4: Develop innovative       Finance Task              Convene a task force of      Ongoing expansion of       Ongoing expansion of these
financing programs for the    Force                     financial experts to         these options.             options.
construction of energy        Financial                 develop attractive
efficient homes.              institutions              financial products for
                              Building Industry         energy efficiency homes.
                              Utilities                 Implement Options

1-5: Encourage local,         Local                     Develop network of           Ongoing                    Ongoing
regional, and statewide       Governments               building owners (home-
leadership groups to          Homeowner                 owners associations) and
support pilots and foster     groups                    builders to help support
communication among                                     the dissemination of
                              Leading Builders
pioneering homeowners                                   information and develop
and builders.                 Utilities                 peer-to-peer

RESIDENTIAL AND LOW INCOME                                                                                                  SECTION 2 – PAGE 16
 Goal 2: Transform home improvement markets to apply whole-house energy solutions to existing

 The overall objective of Goal 2 is to reach all         will focus on effective financing tools especially
 existing homes and maximize their energy                suited for whole-house retrofit measures.
 efficiency potential through delivery of a
 comprehensive package of cost-effective,                While many residential building retrofit measures
 whole-house energy efficiency retrofit                  are not cost-effective under current energy
 measures—including building shell upgrades,             prices, they can find market acceptance and
 high-efficiency HVAC units, and emerging deep           leverage private sector investment based on
 energy reduction initiatives— with                      attributes other than energy savings (e.g.
 comprehensive audits, installation services and         comfort and noise reduction). In the future, the
 attractive financing. This can be achieved              value of GHG reductions may also improve the
 through parallel and coordinated initiatives            economics of such measures. These issues
 among utility programs, private market actors,          should be considered in updating the
 and State and local government policies.                methodology for calculating program or portfolio
 The IOUs currently offer a wide range of energy         A key driver for the success of this Goal is to
 efficiency programs for existing homes, including       create market demand for efficient homes by
 audits, efficient appliance rebates, and                increasing awareness of, and information on,
 consumer education. This Plan envisions a               energy efficiency. In the near term, the Energy
 refocusing of these programs to move from a             Commission will adopt its Home Energy Rating
 “widget” based approach to a “whole house”
                                                         System (HERS) standards for existing homes by
 approach to program delivery to offer
                                                         the end of 2008. In cooperation with the Energy
 comprehensive packages of audits, demand
                                                         Commission, the IOUs will begin voluntary pilot
 side management options and tools, rebates
 and financing options, and installation services.       programs to implement the HERS system and to
                                                         encourage local governments to adopt
                                                         residential energy conservation ordinances for
 A similar approach must be developed for multi-         energy ratings at the time of sale. In the longer-
 family housing, both condominiums and rentals.          term, additional mechanisms might include
 The key to this effort will be defining workable        community initiatives to reduce the “carbon
 financing mechanisms that allow energy bill
                                                         footprint” of homes or neighborhoods, or
 savings from improvements occurring in the
                                                         promoting inclusion of home energy ratings in
 individual units to offset the up-front capital costs
                                                         real estate sales listing information.
 typically paid by building owners and
 homeowners associations. These mechanisms               To achieve both widespread and deep levels of
 also must allow repayment of energy                     energy efficiency throughout the existing
 improvements from successor occupants so that           housing stock will require local government
 turnover does not dissuade taking action. With          leadership. Individual local governments can
 such financing mechanisms, it should be                 adopt residential energy conservation
 possible for multi-family housing to take fuller        ordinances (RECOs) for energy ratings and
 advantage of both private energy services and           possible improvements at the time of sale.
 utility programs and incentives. Since many             Utility programs can partner with these
 lower-income households live in multi-family
                                                         governments to provide supporting information
 housing, they can be served via the strategies
                                                         on ratings systems, cost-effective measures and
 targeting low income households discussed later
                                                         related implementation issues.
 in this Chapter.
 It is also essential that market actors, once           In addition, many actors must work together to
 aware of efficiency opportunities at hand, have         ensure code compliance. Strengthening building
 access to suitable financing mechanisms for             codes without improving local on-the-ground
 whole-house measures. The Finance Task                  compliance leads to illusory progress. Concerns
 Force referenced in the ZNE discussion above,           have arisen regarding whether HVAC

RESIDENTIAL AND LOW INCOME                                                                         SECTION 2 – PAGE 17
 compliance issues already undermine the                objective of these plans should be to leverage
 effectiveness of Title 24 standards, and               State and local resources to improve
 increasing the stringency and coverage of State        compliance. California building officials, for
 standards is likely to add to these issues. The        instance, are responsible for the vast majority of
 reasons behind compliance issues vary with             Title 24 enforcement, and their statewide
 jurisdiction and may include conflicts between         association, the California Association of Local
 State and local priorities, City budget limitations,   Building Officials (CALBO) is one key source of
 and market disincentives for contractors to            perspective on what is and is not working as
 comply.                                                energy standards become more stringent.
 The CPUC and utilities should coordinate with          In order to ensure progress in implementing this
 the Energy Commission and local governments            Goal, a task force of key stakeholders should be
 to identify barriers to aggressive enforcement of      convened to refine and oversee the strategies
 State building standards and to develop effective      identified here.
 plans for overcoming these barriers. An

RESIDENTIAL AND LOW INCOME                                                                       SECTION 2 – PAGE 18
                                                      Goal 2: Existing Homes

                                           Implementation Plan and Timeline

                         Non-CPUC               Near Term                       Mid Term                        Long Term
                          Partners             2009 – 2011                     2012 2015                        2016 2020
2-1: Deploy full-scale   Utilities        Implement pilot home retrofit   Monitor performance of        By 2020:
Whole-House              Home             programs with effective         selected lower energy           25% of existing homes have
programs.                improvement      integration and delivery of     homes. Design implement,        a 70% decrease in
                         industry         comprehensive demand-           monitor and continuously        purchased energy from
                                          side options including          improve full-scale programs     2008 levels
                                          energy efficiency, demand       for whole-house energy          75% of existing homes have
                                          response and renewable          efficiency and renewable        a 30% decrease in
                                          energy measures in specific     energy retrofits.               purchased energy from
                                          locations to prove                                              2008 levels
                                          technologies for next
                                          generation of lower energy                                      100% of existing multi-family
                                          homes in various climate                                        homes have a 40%
                                          zones.                                                          decrease in purchased
                                                                                                          energy from 2008 levels
2-2: Promote             Utilities        Complete initial market         Follow-up market research.      Follow-up market research.
effective decision-      Home             research to determine
making to create         improvement      homeowner “decision
widespread demand        industry         triggers” to improving home
for energy efficiency                     energy efficiency, including
                         Real estate
measures.                                 an assessment of the
                         industry assns
                                          impact of EE or carbon
                         Local            labeling.
                                          Develop, launch, monitor        Continuously improve            Continuously improve
                                          and continuously improve        campaigns to raise demand       campaigns to raise demand
                                          campaigns to raise demand       for lower energy homes,         for lower energy homes,
                                          for lower energy homes,         including home labeling         including home labeling
                                          including home energy or        programs.                       programs.
                                          carbon labeling programs.
                                          Actively support local
                                          governments considering
                                          RECOs to improve the
                                          energy performance of
                                          existing homes at time of
                                          sale or during major
                                          Develop and implement
                                          home rating system pilot
                                          projects based on the
                                          Energy Commission HERS
2-3: Manage              Energy           Gather and disseminate          Ongoing                          Ongoing
research into            Commission       information on advanced
new/advanced cost-       DOE/National     retrofits.

  RESIDENTIAL AND LOW INCOME                                                                                             SECTION 2 – PAGE 19
                                              Implementation Plan and Timeline

                          Non-CPUC                 Near Term                        Mid Term                         Long Term
                           Partners               2009 – 2011                      2012 2015                         2016 2020
effective innovations     labs             Advance technological              Ongoing                           Ongoing
to reduce energy use      Utilities        innovation through
in existing homes                          collaboration of Energy
                                           Commission PIER and
                                           Emerging Technologies
                                           Programs, Utilities and other
                                           appropriate organizations.
                                            Promote commercialization
                                           of home energy management
                                           tools including AMI-based
                                           monitoring and display tools.
2-4 Develop               Finance Task     Develop partnerships for         Design implement, monitor         Design implement, monitor
financial products        Force            innovative financing             and continuously improve          and continuously improve
and programs such         Financial        programs, such as                financial products and            financial products and
as on-bill financing to   institutions     performance contracts and        programs for whole-house          programs for whole-house
encourage demand                           City of Berkeley’s solar and     energy efficiency and             energy efficiency and
for energy efficiency                      EE property loans.               renewable energy retrofits.       renewable energy retrofits
building products,        Local
                          Government       Investigate the feasibility of
homes systems, and                         on-bill financing and other
appliances.               Utilities        lending products.
                                           Convene Task force on
                                           Financing with attention to
                                           issues of multi-family housing
                                           and paying for actions with
                                           longer-term paybacks.
2-5: Increase Title       Energy           Identify the barriers to         80% of transactions that          Monitor success or failure of
24 compliance             Commission       compliance and develop a         trigger Title 24 requirements     leveraging and pursue
through specific          State            compliance plan to implement     will comply with all applicable   additional actions to achieve
measures leading to       Contractor       remedial measures, including     requirements.                     success as necessary.
aggressive statewide      Licensing        legislation if necessary.        Monitor success or failure of
enforcement.              Board            Leverage the compliance          leveraging and pursue
                          Utilities        plan measures to support         additional actions to achieve
                          Local            enforcement of local energy      success as necessary.
                          Governments      efficiency codes and
                                           standards. Identify
                          CALBO            opportunities for leveraging
                          California BSC   Title 24 and local codes
                                           Develop program models that
                                           require proof of code
                                           compliance as a condition of
                                           receiving rebates or

  RESIDENTIAL AND LOW INCOME                                                                                                   SECTION 2 – PAGE 20
 Goal 3: Develop comprehensive, innovative initiatives to reverse the growth of plug load energy
 consumption through technological and behavioral solutions.

 Plug loads are a complex, rapidly growing driver                 every electronic appliance to home offices and
 of electricity consumption, which currently                      the 1+ kW home entertainment centers growing
 account for at least 10-15% of overall household                 in popularity. Potential savings from this plug
 energy use.31 The loads range from the                           load strategy could be 200 MW by 201,1 with
 ubiquitous energy thief transformers on almost                   larger potential savings in the future.

                                             Goal 3: Reduce Plug Loads
                                       Implementation Plan and Timeline
                        Non-CPUC           Near Term                  Mid Term                  Long Term
                         Partners         2009 – 2011                2012 2015                  2016 2020
 3-1 Drive continual   Energy          Work with research         10% reduction in plug   25% reduction in plug loads
 advances in           Commission      organizations to           loads
 residential energy    (PIER)          develop smarter
 usage, including      Utilities       products with lower
 plug loads, home                      energy requirements.
 energy                                Work with
 management            Appliance
                       manufacturers   manufacturers to raise
 systems, and                          product energy
 appliances.           Retailers       efficiency, both when in
                                       use and when in
                                       standby mode.
 3-2 In coordination   Utilities       Complete initial market    Follow-up market        Follow-up market research.
 with Strategy 2-2     Manufacturers   research including         research
 above, develop        retailers       identification of
 public awareness of                   customer decision
 and demand for                        triggers for choosing
 highly efficient                      highly energy efficient
 products.             Consumer        devices.
                       outlets         Implement public
                                       awareness and
                                       information campaign
                                       to promote purchase of
                                       more efficient products
                                       and create behavioral
                                       changes in the way
                                       products are perceived,
                                       used, and managed.

RESIDENTIAL AND LOW INCOME                                                                                    SECTION 2 – PAGE 21
                                     Implementation Plan and Timeline
                         Non-CPUC        Near Term                  Mid Term                       Long Term
                          Partners      2009 – 2011                2012 2015                       2016 2020
 3-3: Create demand     Utilities    Deploy package of         Ongoing                      Ongoing
 for such products      Industry     rebates, incentives and
 through market         partners     voluntary industry
 transformation                      agreements to bring
 activities                          significant numbers of
                                     the best current
                                     technologies for
                                     managing plug loads
                                     (e.g., smart power
                                     strips and informative
                                     visual displays) to
                                     Promote unbiased
                                     labels and Web sites
                                     (Consumer Reports
 3-4: Continuously      Energy       Continuously              Continuously incorporate     Continuously incorporate gains
 strengthen             Commission   incorporate gains in      gains in efficiency in the   in efficiency in the appliance
 standards, including   Utilities    efficiency in the         appliance standards.         standards.
 the expansion of                    appliance standards.
 both Title 24 and 20
 to codify advances
 in plug load

 Goal 4: Transform the residential lighting market through technological advancement and
 innovative utility initiatives.

 Lighting programs have composed the majority                  applications will provide little incremental benefit.
 of California IOU portfolios for residential sector           Accordingly, there is a need to move quickly
 energy efficiency over the past several years.                beyond current lighting programs, and towards
 Such programs typically represent well over half              solutions which focus on longer-term savings,
 of the utility efforts in the residential sector.             lighting behavioral actions, and market
                                                               transformation. Utility program focus will
  This emphasis is largely due to the widespread
                                                               necessarily re-orient towards measures which
 conclusion that lighting opportunities are the
                                                               extend beyond these new standards to usher in
 least expensive and easiest to implement
                                                               the next generation of high-efficiency lighting.
 strategies for major, near-term savings in the
 residential sector.                                           There is also a need to improve collection and
                                                               recycling of end-of-life general purpose lighting
 Over the past year, new legislation has
                                                               to ensure the control of toxic materials. In
 dramatically changed the context for lighting
                                                               accordance with AB 1109 requires the
 programs in California. The 2007 Huffman Bill
                                                               Department of Toxic Substances Control
 (AB 1109) and new Federal lighting standards
                                                               (DTSC) has convened a Task Force of industry,
 required under the Federal Energy
                                                               government, and interest group stakeholders to
 Independence and Security Act of 2007 have
                                                               make recommendations on safe disposal
 codified increasingly stringent standards for
 lighting. As these new standards come into
 force, utility programs targeting these same

RESIDENTIAL AND LOW INCOME                                                                                      SECTION 2 – PAGE 22
 Solid-state lighting (SSL) is a pivotal emerging                     halogen lamps. The performance specifications
 technology which represents one avenue of                            of the competition are very high and will require
 possibility for the future of high-efficiency                        significant levels of innovation on the part of
 lighting. No other lighting technology currently                     manufacturers. To match, the reward is alluring:
 offers so much potential to save energy and                          significant cash prizes, opportunities for Federal
 enhance the quality of our living environments.                      purchasing agreements and access to utility
                                                                      promotion programs. Each of California’s IOUs
 Increasing the market penetration of advanced
                                                                      has been engaged as partners in the program.33
 lighting solutions will require coordinated efforts
 on a number of interrelated fronts.                                  Emerging lighting technologies will require
                                                                      commercialization support through a well-
 Research and development will remain a critical
                                                                      coordinated market push. On the supply-side,
 aspect of this effort to drive continual advances
                                                                      design competitions to engage manufacturers
 in lighting technology and cost performance.
                                                                      will be necessary to motivate far-reaching
 Critical solid-state lighting R&D is being
                                                                      innovations to match customer preferences and
 conducted at the National Labs through DOE’s
                                                                      needs. Technology demonstration projects will
 Building Technology Program, particularly in the
                                                                      engage utilities and their customers, and build
 area of performance testing. In addition, a wide
                                                                      buyer confidence in the emerging technologies.
 variety of research in lighting technology
                                                                      Partnerships between large retailers and utilities
 applications is being conducted at UC Davis’s
                                                                      to jointly negotiate price buy-downs with
 California Lighting Technology Center, as well
                                                                      manufacturers and large-scale retail stocking
 as the CEC’s ratepayer-funded PIER program.32
                                                                      commitments will ensure the ubiquity of
 DOE’s current L-prize competition represents an                      advanced technologies at attractive prices.
 innovative approach to market transformation in                      Finally, continual upgrading of standards for
 the area of residential lighting. The competition                    lighting technology and applications
 challenges industry to develop high-performance                      (EnergyStar, Title 24) will ensure new
 solid-state lighting products to replace two of                      technologies are incorporated into business as
 today's most widely used and inefficient                             usual across the state.
 products: 60W incandescent lamps and PAR 38

                                        Goal 4: High-Performance Residential Lighting
                                            Implementation Plan and Timeline
                         Non-CPUC               Near Term                 Mid Term                  Long Term
                          Partners             2009 – 2011               2012 2015                  2016 2020
 4-1 Drive continual    Energy              Work with research        Ongoing                  Ongoing
 advances in lighting   Commission          organizations to
 technology through     (PIER)              develop lighting
 research programs      Universities        products with lower
 and design                                 energy requirements
 competitions.                              and improved spectral
                        National Labs       performance.
                        Manufacturers       Work with Utilities and
                        Utilities           Retailers to develop
                        Retailers           public awareness and

RESIDENTIAL AND LOW INCOME                                                                                     SECTION 2 – PAGE 23
                                        Implementation Plan and Timeline
                         Non-CPUC           Near Term                   Mid Term                       Long Term
                          Partners         2009 – 2011                 2012 2015                       2016 2020
 4-2: Create demand     Utilities       Deploy package of          Ongoing                      Ongoing
 for improved           Industry        rebates, incentives and
 lighting products      partners        voluntary industry
 through                                agreements to bring
 demonstration                          significant numbers of
 projects, marketing                    the best available
 efforts, and utility                   lighting technologies
 programs.                              (SSL) to market.
 4-3: Continuously      Energy          Continuously               Continuously incorporate     Continuously incorporate gains
 strengthen             Commission      incorporate gains in       gains in efficiency in the   in efficiency in the appliance
 standards.             DOE             efficiency in the          appliance standards.         standards.
                        EPA             appliance standards.
 4-4: Coordinated       Utilities       Ensure that big box        Ongoing                      Ongoing
 phase out of Utility   Retailers       and home
 incentives for                         improvement retailers
 purchase of CFLs                       such as Wal-Mart and
                                        Home Depot are ready
                                        to stock Energy Star
                                        price discounted CFLs
                                        in CA as IOUs phase
                                        CFL programs out.
                                        Utilities engage in
                                        negotiations with
                                        manufacturers and
                                        retailers to buy-down
                                        prices and stock the
                                        next generation of high
                                        efficiency lighting.
 4.5: Ensure            CPUC            Establish minimum          Ongoing                      Ongoing
 environmental          Utilities       mercury content
 safety of CFLs and     Retailers       requirements on the
 other emerging                         CFL manufacturers
 lighting solutions     DOE / EPA       participating in utility
                        Cal EPA         programs.
                        CA Dept. of     Determine cost-
                        Toxic           effective convenient
                        Substances      methods for collection
                        Control         and recycling of any
                        AB 1109         end-of-life light bulbs.
                        Lighting Task   Coordinate consumer
                        Force           education and
                                        marketing programs to
                                        improve disposal

RESIDENTIAL AND LOW INCOME                                                                                          SECTION 2 – PAGE 24

 2.2.1 VISION
   By 2020, 100 percent of eligible and willing customers will have received all cost-effective Low
   Income Energy Efficiency measures.

 2.2.2 PROFILE

 California’s Low Income Energy Efficiency                  Commission has called upon the IOUs for a
 (LIEE) programs provide no-cost energy                     fresh look at LIEE programs to provide an
 efficiency and appliance testing and repair                expanded role for LIEE programs as a California
 measures to qualified low income customers in              energy resource, working in concert with other
 rental and customer-owned residences. The                  efforts to address climate change and meeting
 complementary objectives of the LIEE programs              the needs of more low-income customers. In
 are to provide an energy resource for California           particular, the Commission has adopted a
 and to produce energy savings, while reducing              Big/Bold Strategy to provide all eligible and
 low-income customer bills. Customers                       willing low income customers the opportunity to
 qualifying for LIEE programs represent up to               participate in the LIEE programs and to offer
 30% of the IOUs’ residential customers—or                  cost-effective and quality-of-life improving
 about 3.8 million households. In the past ten              energy efficiency measures in their residences
 years, LIEE programs have provided about 1.6               by 2020.
 million low-income households a range of
                                                            During the initial years of this Plan, the IOUs will
 energy-related services including home
                                                            focus their efforts on developing a more effective
 weatherization, refrigerator replacement, repair
                                                            outreach program using segmentation
 and replacement of heating and air conditioning
                                                            techniques to identify target groups within the
 equipment, and CFL distribution.
                                                            low income populations. In order to serve these
                                                            additional households, the IOUs will design
                                                            programs to be more administratively and
 Although a large number of homes have
                                                            operationally efficient. In the near term, the
 benefitted from measures under the LIEE
                                                            IOUs will develop partnerships with community
 programs over the past 10 years, more than 50
                                                            organizations and local governments to leverage
 percent of low income residences have yet to
                                                            existing services and tools.
 receive energy efficiency upgrades. The

 2.2.3 GOALS
 This Plan contains two goals to achieve the LIEE vision:

 Goal                                                   Goal Results
 1. By 2020, all eligible customers will be given the   Marketing, Education and Outreach programs will be highly
    opportunity to participate in the LIEE program.     successful and the number of eligible households in
                                                        California receiving LIEE services will increase.
                                                        LIEE customers will be educated on the benefits of energy

RESIDENTIAL AND LOW INCOME                                                                               SECTION 2 – PAGE 25
                                                            efficiency and conservation behaviors.
                                                            A trained LIEE workforce will accommodate future job
                                                            demand and educate their communities.

 2. The LIEE programs will be an energy resource by         Other State, Federal and local programs will be leveraged to
   delivering increasingly cost-effective and longer-term   streamline and improve customer identification and program
   savings.                                                 delivery.
                                                            LIEE programs will be integrated with core energy efficiency
                                                            programs to achieve economies of scale.
                                                            Participants will receive comprehensive energy efficiency
                                                            services that produce long-term energy savings for the state,
                                                            while reducing low-income customers’ bills and improving
                                                            their quality of life.

 The market transformation envisioned for the                in partnership with community-based
 LIEE sector involves changing both the delivery             organizations, contractors, educational and
 of products and services and the behaviors that             training institutions, and local, State and Federal
 low income energy consumers rely on to use                  agencies that also serve the low income
 energy efficiently.                                         community.
 The LIEE Goals require leadership from the Low
 Income Oversight Board and the IOUs working

RESIDENTIAL AND LOW INCOME                                                                                    SECTION 2 – PAGE 26
 Goal 1: By 2020, all eligible customers will be given the opportunity to participate in the LIEE

 California and the IOUs will approach this Goal        material purchasing and resources. It also
 through two broad efforts: Marketing, Education,       promotes effective use of low-income service
 and Outreach (ME&O) and Workforce Education            providers, including community-based
 and Training (WE&T). These broader efforts will        organizations and other qualified agencies. The
 encompass current activities as a foundation,          segmentation or tiered approach will enable the
 but will expand to newer, more creative efforts.       IOUs to offer more households measures more
 ME&O efforts will be improved through the              efficiently.
 statewide collaborative and integrated approach
                                                        Increasing the current LIEE program training to
 as discussed in the ME&O Chapter. As part of
                                                        meet the demand for resources is necessary to
 the overall ME&O program, additional efforts
                                                        implement the expanded LIEE programs.
 specifically designed for the low income
                                                        Training efforts for the LIEE program are
 community will be implemented. The IOUs will
                                                        addressed by the strategies described in the
 target outreach efforts based on four customer
                                                        WE&T Chapter of the Plan, including
 profile segments: geography, demographic
                                                        incorporating the needs of the LIEE programs
 description (e.g., language preference), social
                                                        into the needs assessment. The needs
 networks; and level of energy use. Though this
                                                        assessment will include the development of
 list of factors may expand over time, it
                                                        LIEE job definitions, inform a LIEE Training
 represents an extension of current approaches
                                                        Roadmap, and ensure trained resources are
 and areas scheduled to be further developed in
                                                        available to deliver LIEE services. To promote
 the IOUs’ 2009-2011 programs.
                                                        substantial growth in a trained LIEE workforce,
 Second, the IOUs will focus on improving               the IOUs will integrate LIEE program installation
 delivery methods so that all willing and eligible      training with other energy efficiency training.
 customers can be reached by 2020. The                  This integration will enable a wider network of
 segmentation approach discussed earlier will           providers to provide for LIEE services and
 improve the efficiency of delivery by identifying      provide those trained in LIEE access to other
 geographic and social concentrations of                energy service opportunities.
 customers to achieve economies in delivery,

RESIDENTIAL AND LOW INCOME                                                                      SECTION 2 – PAGE 27
                                              Goal 1: Improve Customer Outreach
                                             Implementation Plan and Timeline
     Strategies             Non-CPUC                    Near Term                        Mid Term                 Long Term
                             Partners                  2009 – 2011                      2012 2015                 2016 2020
1.1: Strengthen LIEE      IOUs                   Identify, implement and           Implement energy             Continue to assess
   outreach using         Low income             evaluate effective marketing,     education designed to help   and evaluate
   segmentation           customers              education and outreach            customers understand and     customer-behavior
   analysis and social                           methods for targeting low-        change behaviors in ways     and energy savings;
   marketing tools.                              income customer segments.         that support LIEE savings.   improve upon
                                                 Use social marketing to                                        outreach to eligible
                          Community Based        effectively engage low                                         communities.
                          Organizations          income customers in
                          (CBOs)                 program participation.
                          ME&O Taskforce
                          Local, State and
                          Federal Agencies
1.2: Develop a            IOUs                   Develop a statewide               Launch integrated            Evaluate
   recognizable and       Low Income             program name and                  EE/LIEE/DSM brand.           progress/refine
   trustworthy            customers              description for LIEE which is                                  strategy.
   Brand/Tagline for                             coordinated with the ME&O
   the LIEE programs.                            efforts for energy efficiency,
                          Contractors            demand response and any
                           (CBOs)                other demand-side options.
                                                 Implement branding.
1.3: Improve program      IOUs                   Use information from              Ongoing                      Ongoing
   delivery               LIOB                   segmentation analysis to
                          Low Income             achieve efficiencies in
                          Customers              program delivery.
                          CBOs                   Leverage with Local, State,
                                                 and Federal agencies as
                          Contractors            well as other organizations
                          Local, State and       to increase seamless
                          Federal Agencies       coordination, efficiency and
1.4: Promote the growth   WE&T Task Force        Incorporate LIEE training          Implement LIEE workforce     Implement LIEE
   of a trained LIEE      IOUs                   needs into the Workforce         education and training.        workforce education
   workforce.             Low income             Training needs assessment.         Coordinate resources for     and training.
                          customers              Develop Training Roadmap         training related to LIEE       Coordinate LIEE
                          LIOB                   which includes funding           program needs to ensure        workforce and
                                                 requirements and sources         delivery of LIEE-trained       service providers
                          Contractors            other than IOUs.                 resources to the program.      with broader market.
                          CBOs                   Implement LIEE workforce
                          Local                  education and training.

RESIDENTIAL AND LOW INCOME                                                                                                 SECTION 2 – PAGE 28
 Goal 2. The LIEE programs will be an energy resource by delivering increasingly cost-effective
 and longer-term savings.

 Significant opportunities exist to better achieve    provide information on energy efficiency and
 the Commission’s objectives and more deeply          demand response programs to low-income
 reduce energy use among LIEE qualifying              customers.
 customers through ongoing collaboration among
                                                      The LIEE programs will also receive the benefits
 the IOUs and the State and Federal agencies
                                                      of the core residential strategies on new and
 providing services to the low-income community.
                                                      existing homes. As new technologies are
 In particular, data sharing with other State and
                                                      commercialized for reduced plug loads, energy
 Federal agencies, and collaborating with
                                                      management tools, and building materials, they
 community partners to leverage Federal, State
                                                      will be incorporated into the programs offered to
 and local funds are critical in achieving this
                                                      low income customers. As advanced meters are
                                                      deployed, the LIEE programs will ensure that
 The IOUs currently have successful partnerships      low income customers receive the benefits of
 with low-income population assistance agencies,      energy management tools. As discussed above,
 community based organizations, county                the ZNE new residential homes goal will include
 agencies, and water districts. Over the longer-      affordable housing components. In some cases
 term, utility efforts will increase the number of    strategies identified for the core residential
 partnerships with additional resources and           sector will need to be modified for the LIEE
 organizations.                                       context. For instance, while we have indicated a
                                                      particular strategic direction for lighting
 In addition to working with other local, State and
                                                      programs in the core residential sector, it may
 Federal agencies, the IOUs will focus on
                                                      be appropriate to take an alternative approach
 providing LIEE program measures and services
                                                      within LIEE programs, largely due to the high
 that are cost-effective and emphasize long-term
                                                      initial costs of CFLs and high-efficiency lighting
 and enduring energy savings—for example,
 refrigerators, attic insulation, and other major
 appliance replacements. The LIEE program may         The IOUs will focus on improving delivery
 also include measures that improve customers’        methods so that all of these homes can be
 quality of life.                                     reached by 2020. The segmentation approach
                                                      discussed earlier will improve the efficiency of
 The LIEE programs will also incorporate the
                                                      delivery by identifying geographic and social
 most recent strategies and programs in the core
                                                      concentrations of customers to achieve
 residential sector energy efficiency and DSM
                                                      economies in delivery, material purchasing and
 programs, including the energy efficiency
                                                      resources. It also promotes effective use of low-
 mandates of the California Solar Initiative (CSI).
                                                      income customer service providers, including
 The IOUs will ensure that LIEE participants are
                                                      community-based organizations and other
 made aware of core energy efficiency and
                                                      qualified agencies. The segmentation or tiered
 demand response programs at the time of
                                                      approach will enable the IOUs to offer more
 enrollment. LIEE messaging and outreach will
                                                      households measures more efficiently.
 be integrated into energy efficiency marketing to

RESIDENTIAL AND LOW INCOME                                                                    SECTION 2 – PAGE 29
 Goal 2: LIEE is an Energy Resource

                                     Implementation Plan and Timeline
 Strategies          Non-CPUC               Near Term                         Mid Term                     Long Term
                      Partners             2009 – 2011                       2012 2015                     2016 2020
2.1: Increase        IOUs            Identify key areas where data      Continue to expand                Continue to expand
collaboration and    LIOB            sharing would be possible and      partnerships with                 partnerships with
leveraging of        CBOs            advantageous.                      stakeholders and seek new         stakeholders and
other low-income                     Seek legislative changes to        opportunities for data sharing.   seek new
programs and         Department of
                                     ease data sharing between                                            opportunities for data
services             Community
                                     agencies.                                                            sharing.
                     Local, State,   Develop partnerships with
                     and Federal     community organizations and
                     Government      other agencies to leverage
                                     resources available from local
                                     governments, Federal, State,
                                     and private project funding
2.2: Coordinate      IOUs            Ensure LIEE participants are       Continually reevaluate and        Continually reevaluate
and communicate      LIOB            aware of energy efficiency and     update programs to take           and update programs
between LIEE,                        DSM/EE programs.                   advantage of new                  to take advantage of
energy efficiency                    Coordinate with CSI programs       technologies.                     new technologies.
and DSM                              to provide LIEE program            Explore in-home displays;
programs to                          services in qualified low income   home area networks and/or
achieve service                      housing for both single family     “pay-as-you-go” technology to
offerings that are                   and multi-family CSI programs.     assist low income customers
seamless for the                                                        manage their use.
                                     Coordinate AMI delivery and
                                     LIEE Programs.
2.3: Provide low     IOUs            Assess design for LIEE program     Assess opportunities to           Continue to evaluate
income customers     LIOB            taking into consideration          incorporate new energy
with measures                        increasingly cost-effective        efficiency measures into the
that result in the                   measures that provide an           LIEE program, e.g., plug-load
most savings in                      energy resource for California,    reduction, new HVAC
the LIEE program                     while reducing low-income          technology.
                                     customers’ bills and improving
                                     their quality of life.
                                     Continue to include measures
                                     that provide long term energy
                                     savings, such as refrigerators.
2.4: Increase        IOUs            Identify and develop segmented     Evaluate approach determine       Continue to evaluate
delivery of          CBOs            approach to deliver services to    whether additional segments
efficiency           Local           households.                        are needed.
programs by          Governments     Improve use of CBOs in
identifying                          delivering services.
concentrations of

RESIDENTIAL AND LOW INCOME                                                                                           SECTION 2 – PAGE 30
 3.1         VISION
 Commercial buildings will be put on a path to zero net
 energy by 2030 for all new and a substantial proportion
 of existing buildings. Innovative technologies and
 enhanced building design and operation practices will
 dramatically grow in use in the coming years through a
 combination of comprehensive whole building
 programs, technology development, market pull,
 professional education, targeted financing and
 incentives, and codes and standards.

 3.2     PROFILE
 Commercial buildings consume more electricity                  heating, and cooking) account for over 90
 than any other end-use sector in California. The               percent of gas use. These end uses command
 sector’s 5 billion-plus square feet of space is                attention for energy efficiency savings
 very diverse—not only office buildings but                     strategies.
 stores, restaurants, warehouses, schools,
                                                                In terms of the electricity use by the various
 hospitals, public buildings and facilities34, and
                                                                commercial building types, office buildings are
 others—in aggregate accounting for 38 percent
                                                                the largest accounting for nearly 25 percent.
 of the state’s power use and over 25 percent of
                                                                Restaurants have a comparable share among
 natural gas consumption. Four electric end uses
                                                                gas consumers. Offices, restaurants, and
 (lighting, cooling, refrigeration, and ventilation)
                                                                schools and colleges are in the top five facility
 account for 75 percent of all commercial electric
                                                                types for both fuel types.
 use, while just three (space heating, water

                                                       Table 1 - Profile of Consumption by End Use and Major Facility Type *
                                                                            Electric Cumulative                                   Cumulative
                                                                                                                        Gas %
 The following chart provides a snapshot                                       %     Electric %                                     Gas %
 of dominant energy end uses for                          End Use                                       End Use
 buildings in California by building type          Lighting-inter & exter       34.5      34.5    Space Heating            36.4      36.4
 and energy end use category for 2006.             Cooling                      14.9      49.4    Water heating            31.8      68.2
                                                   Refrigeration                13.4      62.8    Cooking                  22.6      90.8
                                                   Ventilation                  11.9      74.7    Process                   5.9      96.7
                                                   Office Equipment              7.1      81.8    Misc.                     1.8      98.5
                                                       Facility Type                                 Facility Type
                                                   Office                       24.5      24.5    Restaurant               24.5      24.5
                                                   Retail                       14.7      39.2    Health                   13.7      38.2
                                                   Restaurant                    8.9      48.1    Office                   13.3      51.5
                                                   Food Store                    8.8      56.9    School & College         11.1      62.6
                                                   School & College              8.8      65.7    Lodging                   9.0      71.6
                                                   Health                        6.8      72.5    Food Store                3.1      74.7
                                                   Lodging                       4.9      77.4    Retail                    2.5      77.2
                                                   Unrefrig warehouse            3.7      81.1    Unrefrig warehouse        1.3      78.5
                                                   * Source: California End Use Survey, 2006

COMMERCIAL SECTOR                                                                                                      SECTION 3 – PAGE 31
 Commensurate with the energy demand from                     For 2009-2011, this Plan envisions an increased
 the commercial sector, the 2006-2008 IOU                     emphasis on programs to exceed Title 24
 energy efficiency programs for commercial                    standards with the ultimate goal of building
 building retrofits is approximately one third of the         codes and standards that require zero net
 total budget, exceeding $1 billion dollars over              energy (ZNE) new construction and retrofits by
 the three year period. The IOUs also offer a                 2030.
 “Savings by Design” program for new
                                                              Achieving the transformational vision and goals
 construction, which provides incentives to
                                                              established for the commercial sector will
 owners and design teams to incorporate efficient
                                                              involve changing energy user behaviors and the
 systems into building design or to develop
                                                              supply chain of services and products that
 projects that go beyond Title 24 standards using
                                                              commercial end-users rely on to efficiently use
 a whole building approach.
                                                              energy as well as continual updating of codes
                                                              and standards.

 3.3 GOALS
 The following goals will spur actions to transform the energy patterns of California’s largest energy-
 consuming sector—its commercial buildings.

 Goal                                                        Goal Results
 1. New construction will increasingly embrace zero net      An increasing percentage of the 50-120 million sq.ft. per year
   energy performance (including clean, distributed          of new commercial construction will be progressively more
   generation), reaching 100 percent penetration of new      efficient and all new construction will be zero net energy by
   starts in 2030.                                           2030.

 2. 50 percent of existing buildings will be equivalent to   250 million square feet (1/20th of existing space) per year
   zero net energy buildings by 2030 through                 through 2030 reach deep levels of energy efficiency
   achievement of deep levels of energy efficiency and       improvements and clean, distributed generation through
   clean distributed generation.                             whole building approaches.
 3. The commercial lighting industry will undergo            Utilities will begin to phase out traditional mass market CFL
    substantial transformation through the deployment of     bulb promotions and giveaways from program portfolios and
    high-efficiency and high-performance lighting            shift toward new lighting technologies and innovative
    technologies, spurred by State and national codes and    systems that focus on lasting energy savings and more rapid
    standards and leading-edge incentive strategies.         consumer uptake.

 Three interrelated and comprehensive strategies will be employed to reach the goals for energy efficiency
 in new and existing commercial buildings:
                                                                    and parallel, tiered voluntary energy
 1. Codes and Standards: Adopt aggressive                           efficiency standards.
      and progressive minimum energy codes and
      standards for buildings and plug loads,                 2. Access to Information: Align commercial
      effective code compliance and enforcement,                    building benchmarking, advanced metering

COMMERCIAL SECTOR                                                                                                SECTION 3 – PAGE 32
      infrastructure, energy and carbon labeling,              and existing commercial building stock, will
      and operations and maintenance practices                 likely require increased availability and use
      to increase energy efficiency.                           of innovative and expanded financing and
                                                               financial incentives, especially approaches
 3. Financing: Target financing and incentives                 to resolve the “principal agent” problem,
      to support meeting commercial sector goals.              when economic motivation is split between
      Meeting the challenge of reaching ZNE                    owners and tenants.
      levels, for a substantial fraction of the new

 These primary strategies will be supported by three enabling strategies:

 1. Promote integrated design knowledge as the            3.    Offer integrated program delivery of DSM
      basis for commercial building design,                    retrofit solutions.
      construction, renovations and occupancy.
 2.    Support targeted research and
      development and promotion of emerging


 This Plan envisions that the building industry           these voluntary standards and the progressively
 (including developers, construction firms,               higher mandatory standards.
 building owners, tenants, building managers,
                                                          Commercial building market actors tend to follow
 contractors and others), the CPUC, Energy
                                                          the industry leaders. Corporate champions and
 Commission, architectural and engineering
                                                          State and local government leaders can set the
 (A&E) firms, and utilities embrace the vision
                                                          direction and pace using the voluntary higher
 statement and goals as the basis for long-term
                                                          standards. The voluntary tiers should be the
 strategic planning and actions, assuring other
                                                          common reference points for utility incentives,
 market participants of their commitments
                                                          local government ordinances, recognition given
 through 2030. As a result, demand within
                                                          to highly efficient buildings, and other policy and
 building space markets will provide demand
                                                          market-based drivers that go beyond the
 “pull” alongside both codes and standards and
                                                          minimum code to pull up new construction and
 market supply “push” for ZNE and ultra-low
 energy buildings.
                                                          A second key approach is to call upon building
 One promising approach for commercial                    energy and carbon benchmarking and labeling
 buildings is a progressive set of building codes         to inform building owners, tenants, and
 and standards that steadily tightens over the            prospective buyers about the relative efficiency,
 coming years and is directly linked to one or two        operating costs, and carbon footprint of buildings
 tiers of voluntary higher standards, in the              and leased space. This information can help
 “bronze-silver-gold” approach described in the           drive a competitive market demand for greener,
 Residential Sector Chapter. These voluntary              more efficient buildings – both new construction
 higher standards (also known as “beyond” or              as well as improvements to existing structures.
 “reach” codes) will be the leading edge that
 serves to prove and improve the efficacy and             The Finance Task Force mentioned in the
                                                          Residential Chapter above, will be critical to
 cost-effectiveness of advanced products and
                                                          identifying existing and additional means to
 practices. This Plan anticipates that the IOUs, in
                                                          attracting greater participation of capital markets
 cooperation with the building industry and local
                                                          in funding efficiency transactions and innovative
 governments, will continue to play a critical role       and effective financing tools especially suited for
 in providing technical support for developing            ZNE and ultra low-energy commercial buildings.

COMMERCIAL SECTOR                                                                                   SECTION 3 – PAGE 33
 This effort comes at a critical period in the               reductions. The Task Force should investigate
 development of California’s AB 32                           methods to leverage the value of carbon
 implementation process, which has identified                reductions from energy efficiency to finance
 building efficiency as a sizeable source of GHG             implementation of energy efficiency in buildings.

 Goal 1: New construction will increasingly embrace zero net energy performance (including
 clean, distributed generation), reaching 100 percent penetration of new starts in 2030.

 The CPUC and the Energy Commission have adopted the goal of all new commercial buildings
 constructed to ZNE levels by 2030. This “Big/Bold” initiative is based on the Architecture 2030’s 2030°
 Challenge, a global initiative to have all new buildings and major renovations reduce their carbon
 emissions by 50 percent by 2010, and then increasing new buildings’ performance to be carbon neutral
 by 2030. A consortium of groups including the AIA, the American Society of Heating, Refrigeration, and
 Air Conditioning Engineers (ASHRAE), the US Green Buildings Council (USGBC), and the Alliance to
 Save Energy (ASE) have initiated the Commercial Building Initiative which is working to develop a
 framework and strategy for the 2030 Challenge goal.35
 In August 2008, DOE launched the ZNE Commercial Building Initiative (CBI) which aims to develop
 marketable ZNE commercial buildings by 2025. To help with the CBI, DOE has formed the National
 Laboratory Collaborative on Building Technologies (NLCBT), which will allow DOE and five of its national
 laboratories to work closely on the research, validation, and commercialization priorities that are critical to
 the success of ZNE buildings.36
   As with the Residential ZNE goal, new
   construction design, products, materials, and
   operations innovations must be developed
   and implemented. California’s Title 24 should
   be broadened to address as many energy end
   uses as possible, especially plug loads;
   metering and data management; automated
   diagnostic systems; and sub-metering for
   tenant-occupied space. These innovations
   also can quickly transfer to the existing
   building market, especially for those
   undergoing occupancy turn-over renovations                  go beyond individual buildings and consider
   or improvements. This effort should be lead                 community-level energy and carbon impacts.
   by the Energy Commission with significant                   Led by the utilities’ energy efficiency
   support from the utilities, the Building                    programs, the Energy Commission and the
   Standards Commission (BSC), the                             BSC, in partnership with the AIA, ASHRAE,
   construction and building design industry, and              USGBC, the California Architects Board, and
   manufacturers.                                              construction and development organizations,
                                                               should promote the use of building
   The ZNE goal must promote an integrated
                                                               commissioning, retro-commissioning, and
   design strategy. Integrated design brings
                                                               ongoing building measurement and
   together all relevant players at the start of a
                                                               verification to validate the building
   building project to comprehensively analyze
                                                               performance goals of integrated design
   and optimize energy strategies to deliver
   energy-efficient, high performance buildings
   and renovations, at little or no additional cost            California’s “Path to Zero” campaign and
   to the building owner. Integrated design can                associated task force described in the

COMMERCIAL SECTOR                                                                                     SECTION 3 – PAGE 34
    Residential Chapter will lend real-world                            Chapter will also focus on solutions for the
    experience and data on emerging                                     commercial sector. These include appraisal,
    technologies, practices, and designs to deliver                     insurance, and operations pass-through
    zero net and ultra-low energy commercial                            mechanisms that reflect lower operating
    buildings.                                                          costs, higher property values, and substantial
                                                                        non-energy occupancy benefits from green
    Financial tools supporting Commercial ZNE
    investments will be essential. The Finance
    Task Force discussed in the Residential

                                          Goal 1: ZNE Commercial Buildings

                                          Implementation Plan and Timeline
                         Non-CPUC             Near Term                    Mid Term             Long Term
    Strategies                                                                                                      2021 2030
                          Partners           2009 – 2011                  2012 2015             2016 2020
1-1: Establish a long-   Energy        Establish one- or two-tiered      Develop/adopt          RD&D                 RD&D
term progressive         Commission    voluntary EE standards,           process to adjust      Title 24 updates     Title 24
path of higher           Utilities     coordinated with green            the code on a                               updates
minimum codes and                      building rating systems.          triennial schedule
standards ending                       Align Title 24 targets with       on a “fixed”
with ZNE codes and       A&E firms                                       trajectory.
                                       goals of AB 32 and carbon
standards for all new    Building      reduction.
buildings by 2030.       industry

1-2: Expand Titles 20    Energy        Develop and adopt broader         Develop and adopt      Develop and          Develop and
and 24 to address all    Commission    codes and standards for plug      broader codes and      adopt broader        adopt broader
significant energy       Utilities     loads, such as copy               standards for plug     codes and            codes and
end uses.                              machines, printers, battery       loads and sub-         standards for        standards for
                         industry      chargers, televisions.            metering and           other end uses       other end uses
                                       Expand Title 24 to include        automated self         and devices.         and devices.
                                       whole building approaches         diagnostic controls.
                                       including metering and data       Expand Title 20 and
                                       management; automated             Title 24 to cover
                                       diagnostic systems; and sub-      additional uses such
                                       metering for tenant-occupied      as server farms,
                                       space.                            process loads and
                                       Adopt progressive codes and       water use.
                                       standards for high                Develop building
                                       performance commercial            standards to better
                                       lighting applications.            integrate on-site
                                                                         clean distributed
1-3 Establish a “Path    DOE and       Convene leading building          Develop companion      Continue and         Conduct
to Zero” Campaign to     other ZNE     industry associations to plan     strategies to create   refine Campaign      expanded
create demand for        efforts       and conduct campaign.             demand in the                               Campaign
high-efficiency          Building      Organize forums to develop        marketplace for
buildings.               industries    and exchange experience and       high-scoring
                         Building      data on emerging                  buildings.
                         owners        technologies, practices and       Stimulate rapid
                         A&E firms     designs that deliver ultra-low    innovation toward
                         Local and     and ZNE buildings.                ZNE among design,
                         regional                                        engineering, and
                         governments                                     construction
                         Utilities                                       professionals via
                                                                         competitions or
                                                                         other recognition.
                                                                         Conduct campaign

COMMERCIAL SECTOR                                                                                                  SECTION 3 – PAGE 35
                                            Implementation Plan and Timeline
                        Non-CPUC                Near Term                   Mid Term               Long Term
    Strategies                                                                                                            2021 2030
                         Partners              2009 – 2011                 2012 2015               2016 2020
1-4: Develop            Finance Task     Develop and pilot innovative     Disseminate              Expand                  On-going
innovative financial    Force            financial tools.                 performance              Implementation of       expansion of
tools for ZNE and       Financial and    Identify building performance    information on new       innovative              most useful
ultra-low energy new    Investment       metrics or documentation         financing,               financing               mechanisms.
buildings.              community,       needed to inform building        insurance, and           mechanisms.
                        Commercial       performance and valuation.       property valuation       Promote benefits
                        developers                                        instruments to           via benchmarks,
                                         Develop performance data.
                        and Trade                                         increase awareness       labeling, and
                        groups                                            and utilization within   case studies.
                        Utilities                                         financial and real
                                                                          estate markets
                                                                          Implement most
                                                                          effective funding

1-5: Create             Finance Task     Investigate other funding        Secure                   Ongoing                 Ongoing
additional investment   Force            support that might be offered    governmental             expansion of            expansion of
incentives and          Utilities        such as local government         support for most         these options.          these options.
leverage other          Financial and    “feebates” for EE/green          promising
funding.                Investment       construction, Federal funding,   supplemental funds
                        community        Federal or State tax             or investment
                        Building trade   incentives, GHG reduction        support.
                        groups           benefits, e.g. via carbon
1-6: Develop a multi-   Integrated       Promote ID development via       Promote widespread       Ongoing                 Ongoing
pronged approach to     Design           Title 24 codes/ standards and    adoption of tools        curriculum              expansion of
advance the practice    Working          market activities.               and resources that       enhancements to         these options
of integrated design.   Group            Identify/develop tools and       enable ID.               promote ID.
                        Utilities        protocols from building          Create market            Professional
                        AIA              commissioning, retro-            demand for ID as a       boards establish
                        CAB              commissioning and building       key strategy to          minimum
                                         M&V to enable ID to be           comply with a vastly     guidelines for A/E
                        Architectural    deployed.                        enhanced Title 24.       and construction
                                         Form partnerships with           Leverage                 firms to require ID
                        Building and     industry and                                              skills as a core
                                                                          competition between
                        Building         architectural/engineering                                 competency
                                                                          A/E firms to ramp up
                        products         schools to promote the                                    among personnel
                                                                          their ID expertise.
                        Industry         practice of and education in     (similar to how          Demonstrate how
                        ASHRAE           ID.                              LEED-AP has              ID, Cx, RCx, and
                        USGBC            Provide incentive credits for    become de rigueur)       Bldg M&V can
                                         professionals who maintain       Implement an             produce GHG
                                         their accreditation with ID      integrated design        benefits.
                                         training.                        curricula.

COMMERCIAL SECTOR                                                                                                        SECTION 3 – PAGE 36
 Goal 2: 50 percent of existing buildings will be retrofit to zero net energy by 2030 through
 achievement of deep levels of energy efficiency and with the addition of clean distributed

 As discussed above, the commercial building             buildings, thereby creating a “market pull” for
 industry tends to respond to industry leaders to        buildings that are energy efficient.
 set the path for action. Therefore, it is critical to
                                                         Goal 2 will also leverage the progress made in
 lead by example by making public, State-owned
                                                         mandatory and voluntary codes and standards
 and leased buildings benchmarked, sub-
                                                         developed for Goal 1, by lowering the renovation
 metered, and retro-commissioned and energy
                                                         threshold at which minimum codes and standards
 efficient. In a 2004 Executive Order, Governor
                                                         are applied to an entire existing structure. This
 Schwarzenegger established the Green
                                                         effort must be accompanied by appropriate
 Buildings Initiative (GBI) which sets a goal of
                                                         financing tools and robust actions to improve and
 reducing energy use in State-owned buildings by
                                                         enforce compliance with existing codes for
 20 percent by 2015 (from a 2003 baseline) and
                                                         renovations and by including training of building
 encourages the private commercial sector to set
                                                         managers and operators to ensure maximum
 the same goal. The Green Action Team (GAT),
                                                         efficiency from building systems. As discussed in
 established by the Order has carried out efforts
                                                         detail in Chapter 6, special attention must be
 over the past three years to promote energy
                                                         placed on proper design and installation/repair of
 efficiency in State and commercial buildings.37
                                                         air conditioning systems.
 Both the University of California and the
 California State University System have                 In 2005, the Energy
 committed to sustainable energy goals for their         Commission issued a
 campuses.                                               report titled, Options for
                                                         Energy Efficiency in
 Additionally, the State Architect in cooperation
                                                         Existing Buildings,39 which
 with the Office of Public School Construction is
                                                         adopted two strategies for
 developing a "Grid Neutral by Design" program
                                                         commercial buildings –
 to encourage schools built and renovated with
                                                         benchmarking tools and retro-commissioning
 state funds to achieve higher levels of energy
                                                         guidelines and implementation. Elements of the
 efficiency and produce as much energy as they
                                                         benchmarking strategy are being implemented
 use over the course of a year. The Grid Neutral
                                                         through AB 1103 (Saldana, 2007) which requires
 schools program will further encourage energy
                                                         benchmarking of the energy consumption of
 efficient public schools while providing additional
                                                         commercial buildings and disclosure to a
 opportunities to implement clean on-site
                                                         prospective buyer, lessee, or lender.40
 generation as new schools are built and the
 existing schools are renovated. 38                      The Energy Commission’s benchmarking and
                                                         retro-commissioning strategies must be further
 A wide range of local governments,
                                                         implemented by actions to better align commercial
 corporations, and institutions, likewise have
                                                         building benchmarking, and operations and
 committed to attaining certification for energy
                                                         maintenance practices with labeling and financial
 efficiency (via US EPA’s EnergyStar buildings
                                                         incentives. The IOUs will link their rebate
 ratings) and/or the US Green Building Council’s
                                                         programs to benchmarking to spur market demand
 LEED system for green buildings. California has
                                                         for steadily improving benchmarks. During the
 by far more qualifying facilities in these
                                                         2009-2011 periods, the goal is to attain a
 programs than any other state.
                                                         benchmark score for specified buildings; starting in
 Goal 2 uses a combination of regulatory and             2012-2015, the goal is to attain a minimum Energy
 market forces to enable owners and tenants to           Star benchmark score. In concert with
 value the economic and environmental                    benchmarking, strategies to increase the role of
 advantages of high-performing (existing)                asset value ratings, similar to the Home Energy
                                                         Rating System (HERS), provide a potent means to

COMMERCIAL SECTOR                                                                                   SECTION 3 – PAGE 37
 making energy efficiency a key determinant in       building attributes will be needed to encourage
 driving the commercial real estate market.          owners and tenants to demand—and, in turn,
                                                     markets to deliver—highly efficient buildings.
 The EPA Portfolio Manager's Energy Star
 benchmark rating system is a commonly-used          The Energy Commission’s 2005 Existing Buildings
 and well-known benchmarking system well-            Report identified development of retro-
 suited to major commercial building types such      commissioning guidelines by the Energy
 as offices and schools. California or EPA will      Commission as a key step in the strategy for
 need to develop other or expanded tools to rate     existing buildings. The Energy Commission
 remaining building types including through the      should develop such guidelines in the near future.
 use of asset ratings. Also in the longer term,      The IOUs should strengthen their existing retro-
 local governments could adopt ordinances to         commissioning efforts by using benchmarking
 issue and renew building certificates of            information to strategically identify the best
 occupancy only for buildings meeting minimum        candidates for retro-commissioning and promote
 energy benchmarks.                                  whole-building approaches and incentives.
                                                     Collaboration must occur among the Energy
 The benchmarking and labeling mandates must
                                                     Commission, CPUC, the building industry, and
 evolve to include carbon footprint information.
                                                     national laboratories to develop tools and
 Although the US Green Building Council’s
                                                     strategies to further reduce energy consumption
 Leadership in Energy and Environmental Design
                                                     via information, behavioral strategies,
 (LEED) rating system has become a de facto
                                                     commissioning and retro-commissioning, and
 “green” label, it does not provide specific
                                                     operating practices. An effective communications
 information on a building’s energy or carbon
                                                     strategy to make the business and environmental
 performance. Annual energy and carbon labels
                                                     case for owners and tenants to demand high
 are needed for populated buildings to send
                                                     voluntary performance levels must also be
 signals to market players that actual (not just
 designed) building energy performance is of
 value in commercial building markets. Protocols
 for low-carbon and high-efficiency commercial

 Achieving the energy savings identified from codes and standards, benchmarking, and commissioning
 requires further action on three fronts.

                                                         reduced utility bills, higher worker productivity,
   First is to motivate owners and operators to
                                                         and other benefits.
   undertake improvements. This will mean
   presenting compelling business cases to top
   decision-makers, while strengthening the
                                                         Third is to facilitate the existence of
   skills and knowledge of building operators.
                                                         knowledgeable energy management service
                                                         providers that can conveniently arrange
                                                         comprehensive improvements in buildings.
   Second is to ensure access to financing
                                                         This may require experimentation with
   mechanisms that effectively surmount capital
                                                         incentives or new business model incubation
   limitations and cash flow requirements. This
                                                         to attract and reward those businesses willing
   means attracting the interest of banking and
                                                         to offer and arrange one-stop comprehensive
   capital industries to the magnitude of
                                                         energy management solutions that achieve
   investment and borrowing needs, and
                                                         deeper levels of savings than more typically
   identifying finance mechanisms that properly
                                                         obtained from the more specialized
   balance recovery of owner costs through
                                                         businesses primarily operating in energy
   rents, operating cost pass-throughs, or sales
                                                         service markets today.
   price premiums as occupants experience

COMMERCIAL SECTOR                                                                                SECTION 3 – PAGE 38
                                                   Goal 2: Existing Buildings
                                              Implementation Plan and Timeline
                       Non-CPUC                  Near Term                  Mid Term              Long Term
   Strategies                                   2009 – 2011                2012 2015              2016 2020
 2-1: Lead by         State of          Ensure all State-owned and      Require all public        250 local                400 local
 Example:             California        leased buildings are            buildings receiving       governments          governments
 State/local          Green Action      benchmarked and retro-          significant financial     reach the            reach the Energy
 governments and      Team              commissioned by 2012.           support from the State    Energy Star          Star target by
 major                Local             Conduct campaign to have 100    are benchmarked and       target by 2020.      2030.
 corporations         governments       local governments commit to     retro-commissioned by     2 billion sq. ft.        4 billion sq. ft.
 commit to                              the same target.                2015.                     of commercial        of commercial
 achieve energy                                                         All State-owned and       space reach          space reach the
                      industry          Conduct campaign to have 500
 efficiency, EE,                                                        leased buildings (on      the Energy           Energy Star
                      Building owners   million sq. ft of commercial
 (or green) targets                                                     average) reach Energy     Star target by       target by 2030.
                      Business          space where owners/tenants
 in existing                                                            Star equivalent rating    2020.
                      Community         pledge to reach the same
 buildings.                                                             by 2015.
                                        target by 2015.
                                                                         100 local governments
                                                                        reach the Energy Star
                                                                        target by 2015.
                                                                          500 million sq. ft of
                                                                        commercial space
                                                                        where owners/tenants
                                                                        reach the Energy Star
                                                                        target by 2015.
 2-2: Lower the       Energy            Adopt regulations to lower      Implement lower           If necessary,
 threshold for        Commission        threshold applied to existing   threshold for             adopt
 applying codes to    California        building renovations.           renovations.              regulations to
 existing             Building                                                                    further lower
 buildings.           Standards                                                                   threshold
                      Commission                                                                  applied to
                      Building                                                                    existing
                      industry                                                                    building
                      Local                                                                       renovations.

COMMERCIAL SECTOR                                                                                                     SECTION 3 – PAGE 39
 2-3: Ensure         Energy            Analyze and adopt best options      Fifty percent of HVAC    By 2020, 90
 compliance with     Commission        to ensure compliance with           installations comply     percent of
 minimum Title 24    BSC               minimum standards.                  with codes via permits   HAVC systems
 codes and           Contractors       Establish accepted certification    by 2015. (See            are installed to
 standards for       State Licensing   methods for voluntary levels of     implementation details   code and
 building            Board             high-performance buildings.         in Chapter 6, Goal 1)    optimally
 renovations and     Professional                                                                   maintained for
                                       Fifteen percent of HVAC sales
 expansion.          licensing/                                                                     systems’
                                       by 2015 are for advanced air
                     Registration                                                                   useful life.
                                       conditioning technologies
                                       optimized for climate variations.

 2-4: Establish      Legislature       Carry out effective                 Implement mandatory      Require              Establish
 mandatory           Energy            benchmarking mandate for all        energy and carbon        minimum              change in
 energy and          Commission        commercial buildings, triggered     labeling and             levels of            tenancy/lease
 carbon labeling,    Utilities         by changes in building              benchmarks.              benchmarks to        as a trigger for
 benchmarks and      Research          ownership, financing or             Promote national         maintain future      updated
 asset rating.       institutions      tenancy.                            labeling and             certificates of      benchmarking
                     Building owners   Develop or approve protocols        benchmarking             occupancy.           requirements.
                     and operators     for benchmarking and                standards and            Establish
                     Industry          compliance options.                 protocols.               change of
                     stakeholders                                                                   ownership as
                                       Incorporate carbon footprint        Develop minimum
                     State agencies                                                                 a trigger for
                                       into labeling.                      levels of benchmarks
                     Local                                                                          updated
                     Governments       Link IOU and other incentives       to maintain future
                                       to benchmarks.                      certificates of          benchmarking
                                                                           occupancy.               requirements.

 2-5: Develop        Building          Identify new or improved tools      Quantify and document    Use business
 tools and           Industry          and strategies that apply           business case for EE     case to
 strategies to use   Energy            information and behavioral          commissioning and        expand BOC
 information and     Commission        strategies, including               operation and            programs to
 behavioral          Utilities         presentation of economic,           maintenance (O&M         an increased
 strategies,         Research          comfort and productivity cases      activities.              portion of
 commissioning,      Institutions      to owners, occupants, and                                    commercial
 and training to                       appraisers.                                                  buildings.
 reduce energy                         Strengthen tools and practices
 consumption in                        for building commissioning.
 commercial                            Strengthen Building Operator
 buildings.                            Certification (BOC) training for

COMMERCIAL SECTOR                                                                                                      SECTION 3 – PAGE 40
 2-6: Develop          Finance Task         Quantify magnitude of building          Roll out new                 Evaluate             Refine or
 effective financial   Force                investment needed in                    instruments.                 instruments          develop most
 tools for EE          Utilities            California to meet long-term            Evaluate instruments         and cash flow        effective EE
 improvements to       Financial and        EE goals, and identify                  and cash flow of             of                   financing
 existing              Investment           business-types expected to              transactions. Promote        transactions.        instruments
 buildings.            community            benefit from EE investments.            success stories.             Promote              and business
                       Building owners      Build and quantify strong                                            success              capital
                                                                                    Refine or develop
                       and operators        business case for DSM/GHG                                            stories.             investment
                                                                                    most effective EE
                       Real estate          reduction.                                                                                paths.
                                                                                    financial instruments
                                            Identify tools, instruments, and        and business capital
                       Local                information necessary to                investment paths.
                       Governments          attract capital to EE.
                                            Explore changes to standard
                                            lease terms to address
                                            perceived tenant/owner “split
                                            incentives” issue.
                                            Explore expanding on-bill
                                            financing offerings to other
                                            DSM programs.

 2-7 Develop           Utilities         Initiate utility incentive pilots that    Identify and promote to     Apply branding,      Refine most
 business models       Energy Service    test the viability of integrated         venture capital and          certification,       effective
 and supplier          Companies         DSM service delivery models              investment circles           marketing, or        integrated one-
 infrastructure to     (ESCOs)           (ESCOs, aggregators, etc.)               business model barriers      incentive            stop delivery
 deliver integrated    DSM and solar     Explore other mechanisms to              and opportunities for        strategies that      models.
 and                   service           more highly reward                       scalable integrated          best delivery
 comprehensive         providers         comprehensive energy                     business models              one-stop
 “one-stop”            Venture capital   management retrofits, e.g.                                            comprehensive
 energy                firms             premium incentives for measured                                       DSM services.
 management            Local             performance, local government
 solutions             Governments       permits incentives, insurance
                                         discounts, etc.

 2.8. Improve          Utilities         Test and deploy package of               Incorporate most             Promote best         Refine and
 utilization of plug   Industry          rebates, incentives and voluntary        effective approaches and     practices and        pursue most
 load technologies     Partners          industry agreements to bring             technologies into building   fully incorporate    promising new
 within the                              significant numbers of the best          codes and State/Federal      into                 approaches.
 commercial                              available technologies for               equipment standards.         benchmarking
 sector.                                 managing plug loads within the                                        and labeling
                                         commercial sector.                                                    systems.

COMMERCIAL SECTOR                                                                                                                  SECTION 3 – PAGE 41
                                      Goal 3: High-Performance Commercial Lighting
                                              Implementation Plan and Timeline

                       Non-CPUC                  Near Term                        Mid Term               Long Term
   Strategies                                   2009 – 2011                      2012 2015               2016 2020
 3-1 Drive            Energy           Work with research                  Continue to work with       Refine R&D           Ongoing
 continual            Commission       organizations to develop            most promising              focus to areas of    refinements.
 advances in          (PIER)           lighting products with lower        materials, designs,         greatest future      Update
 lighting             Universities     energy requirements and             and/or controls             promise.             standards
 technology                            improved spectral performance.      Incorporate most            Update
                      National Labs
 through research                      Work with Utilities and Retailers   effective approaches and    standards
 programs and         Manufacturers
                                       to develop public awareness         technology into building
 design               Utilities        and demand.                         codes and State/Federal
 competitions.        Retailers                                            equipment standards

 3-2: Create          Utilities        Deploy package of rebates,          Phase out incentives for    Target case          Refine and
 demand for           Industry          incentives and voluntary           earlier generations of EE   studies and          pursue most
 improved lighting    partners          industry agreements to bring       technologies                performance          promising new
 products through                       significant numbers of the best    Incorporate most            data to lighting     approaches
 demonstration                          available commercial lighting      effective approaches and    buyers               Update
 projects,                              technologies (SSL) to market.      technology into building    Update               Standards
 marketing efforts,                                                        codes and State/Federal     standards
 and utility                                                               equipment standards

 3-3: Coordinated     Utilities        Ensure that big box and home        Incorporate most            Promote best         Refine and
 phase out of         Retailers         improvement retailers such as      effective approaches and    practices and        pursue most
 Utility incentives                     Wal-Mart and Home Depot are        technology into building    fully incorporate    promising new
 for purchase of                        ready to stock Energy Star         codes and State/Federal     into                 approaches
 CFLs                                   price discounted CFLs in CA as     equipment standards         benchmarking         Update
                                        IOUs phase CFL programs out.                                   and labeling         standards.
                                       Utilities engage in negotiations                                systems.
                                        with manufacturers and                                         Update
                                        retailers to buy-down and stock                                standards
                                        the next generation of high
                                        efficiency lighting.

COMMERCIAL SECTOR                                                                                                          SECTION 3 – PAGE 42
 4.1        VISION
 California industry will be vibrant, profitable
 and exceed national benchmarks for energy
 efficiency and resource management.

 4.2        PROFILE
 California’s industrial sector is both a major driver of California’s economy and a major consumer of

                         Contribution of the Industrial Sector      (% of total in CA)

                         Electricity use                                    16

                         Natural gas use41                                  33

                         Energy use42                                       22
                         End use CO2 emissions                              20

 The treatment, distribution, and use of water in California’s industrial sector contributes an additional
 3 percent of California’s electricity use and 14 percent of its non-power plant natural gas.44

INDUSTRIAL SECTOR                                                                                     SECTION 4 – PAGE 43
 Energy consumption in the industrial sector is distributed across a variety of distinct industries and
 processes. As shown below, the largest industrial users of electricity in California are food processing
 and electronics, although a number of other sectors have also reached significant use levels.

                         Industrial Electricty Usage by Industry Type, 2003–Overall
                            Energy                                                   Peak Demand

            Food                                                        Food
 Tex tiles/Apparel                                           Tex tiles/Apparel
Lumber/Furniture                                            Lumber/Furniture
           Paper                                                       Paper
          Printing                                                    Printing
      Chemicals                                                   Chemicals
       Petroleum                                                   Petroleum
 Rubber/Plastics                                             Rubber/Plastics
Stone/Clay /Glass                                           Stone/Clay /Glass
     Prim Metals                                                 Prim Metals
      Fab Metals                                                  Fab Metals
   Ind Machinery                                               Ind Machinery
      Electronics                                                 Electronics
    Transp Equip                                                Transp Equip
      Instruments                                                 Instruments
   Miscellaneous                                               Miscellaneous

                     0    1000    2000  3000  4000   5000                        0   100   200   300 400   500   600    700
                                 GWh per Year                                                       MW

 The largest user of natural gas is petroleum sector, with about half going to feedstocks, followed by food

INDUSTRIAL SECTOR                                                                                                      SECTION 4 – PAGE 44
                          Industrial Natural Gas Usage by Industry Type,
                           Tex tiles/Apparel
                          Stone/Clay /Glass
                               Prim Metals
                                Fab Metals
                             Ind Machinery
                              Transp Equip

                                               0   200   400    600   800 1000 1200 1400 1600
                                                   Millions of Therms (Mth) per Year
                       Source: KEMA 2006, California Industrial Existing Construction Energy Efficiency
                               Potential Study

 Several factors unique to the industrial sector require an approach to California’s energy efficiency and
 greenhouse gas (GHG) reduction goals different from that used in the commercial and residential sectors:
                                                                        mobile assets in a competitive global
   Industry uses a large quantity of energy and
   other resources via complex and proprietary
   processes to create and bring products to                            California industry is highly diverse in type,
   market. Products, to varying degrees, have                           size, and operation; uniform programs often
   embedded energy that traditionally cannot be                         will not match corporate or facility needs.
   “zeroed out”, although technology is changing
                                                                        Industries are subject to multiple policies and
   (e.g., the developing technologies for “zero
                                                                        rules in resource areas (e.g. air quality, water
   energy” cement, dry walls, etc.)
                                                                        quality, energy efficiency, GHG reductions,
   Industrial facilities in California are                              solid waste management), where compliance
   increasingly managed by corporations that                            can raise competing objectives and outcomes.
   reside outside of the state or outside of the
   country and that view these facilities as

INDUSTRIAL SECTOR                                                                                               SECTION 4 – PAGE 45
 4.3           GOALS
 Goal                                                         Goals Results

 1. Support California industry’s adoption of energy          By 2012, the goals, program designs and funding of
   efficiency by integrating energy efficiency savings with   industrial resource management programs are fully
   achievement of GHG goals and other resource                coordinated.
   management objectives.

 2. Build market value of and demand for energy               Energy efficiency certification and benchmarking will become
   efficiency through branding and certification.             a standard industrial practice for businesses that are
                                                              responsible for 80 percent of the sectoral energy usage by
                                                              By 2020, Energy intensity (per gross dollar of production
                                                              value) will be reduced at least 25 percent.
                                                              There will be a trained workforce in energy management and
                                                              systems energy efficiency.

 3. Provide centralized technical and public policy           Industrial consumers will use this knowledge base to inform
   guidance for resource efficiency and workforce             energy efficiency actions and manage their energy and
   training.                                                  resource use by adopting best practices.

 4.4        STRATEGIES
 Industry has the capacity to significantly improve its overall energy performance and help meet both
 private-sector and national goals for energy and the environment. There are a multitude of significant
 barriers, however, to achieving the full technical or economic potential for energy efficiency in the
 industrial sector. These barriers are predominantly institutional and behavioral, not technical. They

    Lack of awareness of energy efficiency                        Resource limitations of both time and capital
    opportunities by industry personnel                           for assessment and implementation of energy
    consultants, and suppliers.                                   efficiency projects.
    Difficulty in accessing industry-relevant                     Internal hurdle rates that often limit capital
    technical assistance.                                         available for energy efficiency projects with
                                                                  paybacks longer than two years.
    Inadequate availability of qualified personnel
    and consistent organizational structure                       Utility program parameters that can be at
    oriented towards energy use management.                       odds with industry practice (e.g. limitations
                                                                  due to “free-rider shop” rules, lack of
    Primary business focus on optimizing
                                                                  recognition of savings from process or
    industrial output, not energy throughput.
                                                                  operational changes, limits on funding for
    Risk aversion to investing in new technologies                large projects).
    and processes which may impact industrial
    output or quality.

 This Plan will use the following strategies to address these barriers:

INDUSTRIAL SECTOR                                                                                               SECTION 4 – PAGE 46
                                                           recognition, spurring peer competition, and
 4. Integrated Solutions: Provide integrated               facilitating engagement in market trading
     energy solutions and products through a               mechanisms.
     “one-stop shop” approach.
                                                       7. Workforce Training: Leverage existing
 5. Education and Outreach: Provide energy                 training initiatives and technical exchange
     efficiency education and outreach to create           forums so that California industries have
     awareness of and demand for continuous                access to highly-skilled professionals who
     energy efficiency improvements.                       are fully knowledgeable in the areas of
 6. Branding and Certification: Promote                    system energy efficiency and energy
     commonly accepted metrics to document                 management.
     corporate and facility attainment of resource
     management levels, gaining market

 Goal 1: Support California industry’s adoption of energy efficiency by integrating energy
 efficiency savings with achievement of GHG goals and other resource goals.

 Ideally, this effort will be integrated with the      While the CPUC and IOU utilities could
 CARB’s AB 32 requirements so that industrial          potentially develop such a program focused only
 facilities use energy efficiency to meet or exceed    on energy efficiency savings, a program
 regulatory requirements for GHG emission              approach covering all energy resource
 reductions (as well as water conservation, waste      utilization, including energy efficiency, demand
 disposal, and air quality). Properly structured, a    response, energy storage, combined heat and
 coordinated regulatory framework could be             power, distributed generation, renewables and
 coupled with incentives to actively promote and       emerging technologies will provide the greatest
 reward measured performance improvements              benefit.
 across energy, water, GHG emissions, waste
 disposal, and air quality.                            The food processing industry, with the
                                                       leadership of the California League of Food
 A major strategy will be to directly engage           Processors in partnerships with the
 industry in coordinated interagency planning for      Manufacturers Council of the Central Valley, has
 the energy efficiency portions of AB 32. This         proposed such a pilot demonstration project that
 effort will include examining the potential           could be initiated in 2009.
 benefits of negotiated, legally binding
 agreements with the chief operating officers of       This effort will also enable broadening utility
 industrial corporations as a policy mechanism to      program incentives from the current focus on
 promote energy efficiency in industry and             energy efficient projects to include energy
 corresponding reductions in GHG emissions.            efficient processes (defined as documented,
 The United Kingdom, the Netherlands, Sweden,          measurable evidence of energy management
 and a number of other countries have negotiated       resulting in improved energy efficiency via
 agreements programs in place, and such a              projects, process, and operational
 strategy may work in California. DOE has              improvements). The focus must move to
 begun development of national voluntary               delivered energy savings, either from hardware
 agreement programs as well. A multi-                  installations or documented permanent changes
 stakeholder alliance focused on knowledge             in operational processes. Utility program rules
 sharing and capacity building could further aid in    must become more flexible and find ways to
 the adoption of changes in industrial operations      work with the reality of industrial decision-
 and processes.                                        making, particularly regarding early replacement
                                                       of equipment.

INDUSTRIAL SECTOR                                                                              SECTION 4 – PAGE 47
                                       Goal 1: Integration with Other Resource Strategies
                                            Implementation Plan and Timeline
      Strategy             Non-CPUC                Near Term                  Mid Term                  Long Term
                            Partners              2009 – 2011                2012 2015                  2016 2020
 1-1:Develop             CARB                 Establish CARB AB 32        Analyze results of pilot   Implement statewide
 coordinated energy      CEC                  Industry Team               program.
 and resource            State Agencies       Study feasibility of        If favorable, negotiate
 management              for water, solid     implementing negotiated     agreements with other
 program for CA’s        waste, and           agreements                  key sectors
 industrial sector, to   toxic                Undertake pilot program
 enhance use of          substances           with food processing
 energy efficiency                            sector
                         Industry Reps.

 Goal 2: Build market value and demand for continuous improvement in industrial efficiency
 through branding and certification.

 Goal 1 above focused on strategies that will                           SEPP is scheduled to be launched in 2010.
 support development of minimum regulatory                              Texas will conduct a pilot program in mid-2008
 energy efficiency requirements for either                              through mid-2009. California could join the
 individual company or industrial sub-sectors as a                      initiative while it is still under development.
 whole, preferably integrated with the State’s AB                       Building upon the experience of the Texas pilot
 32 program. Goal 2 is focused on companies                             program, California’s engagement in the
 that seek to exceed either minimum regulatory                          partnership would ensure that the elements of
 requirements or any negotiated bilateral                               the certification program, including the
 agreement targets for industries as a whole, by                        monitoring and verification methodology, are
 actively managing their energy use over time.                          compatible with other California industrial energy
                                                                        efficiency and GHG emission reduction program
 In order for industry to make significant gains in                     regulations.
 energy efficiency, there must be greater
 awareness and knowledge sharing about                                  By participating in a recognized national effort to
 programs, resources, and practical methods that                        certify industrial facilities for energy efficiency,
 can help industrial plants identify, develop, and                      California will be assisting its industries to:
 document energy efficiency improvements and
 their economic benefits.                                                 More easily reach their GHG emission
                                                                          reductions targets via a supported, structured
 A national industrial performance program,                               program based on proven best practices;
 known as the “Superior Energy Performance                                Develop wide market recognition for their
 Partnership” (SEPP), is being developed by                               efforts through third-party certification, thus
 DOE, EPA, the Manufacturing Extension                                    increasing global competitiveness
 Partnership, and a number of industrial firms.45
 This partnership seeks to fosters continuous                             Ensure corporate attention to a uniform
 progress in industrial energy efficiency, through                        national approach; and
 providing a mechanism to help individual                                 Provide a tangible way to encourage greater
 companies certify energy efficiency                                      energy efficiency through their supply chain.
 improvements, independently verify resulting                           Programs, such as those offered through DOE’s
 energy savings, receive public recognition for                         Industrial Technologies Program (DOE/ITP) and
 achievements, and "raise the bar" for industrial                       EPA could provide substantial cost-share
 energy efficiency overall.46

INDUSTRIAL SECTOR                                                                                                     SECTION 4 – PAGE 48
 opportunities and in-kind assistance, especially                             suppliers) to provide energy management
 if linked to certification.                                                  assistance, in-depth system assessment
                                                                              services, and in later phases, multi-resource
 To meet the near-term needs for a branding and
                                                                              utilization assistance, including waste reduction,
 certification program, California industries must
                                                                              water efficiency and air quality. California can
 have ready access to highly-skilled
                                                                              leverage the workforce training element of the
 professionals who are trained in energy
                                                                              SEPP program to achieve this goal.
 management and systems efficiency. Key areas
 include training industry professionals
 (consultants, plant engineers, and equipment

                                    Goal 2: Certification Program for Continuous Improvement
                                            Implementation Plan and Timeline
    Strategies              Non-CPUC                    Near Term                      Mid Term               Long Term
                             Partners                  2009 – 2011                    2012 2015               2016 2020
 2-1: Participate in    DOE/EPA                 Participate in planning process.
 DOE/EPA’s national     SEPP participants
 Superior Energy        Utilities
 Partnership            Industry
 (“SEPP”) program.
 2-2: Implement         SEPP Program            Plan pilot and recruit host sites     If successful,        Refine and obtain
 certification          Utilities               (8-10 facilities).                    launch broader        widespread industrial
                        Industry                Implement and analyze pilots.         program for           enrollment and
                                                                                      priority industry     certifications.
 2-3: Develop and       SEPP Program            Adopt the national curriculum         Expand to wider       Expand to industries
 implement              WE&T Task Force         for certification.                    industry segments.    statewide
 workforce training     Utilities               Consider curriculum                                         Maintain and update
 program (integrated                            enhancements for awareness-                                 curriculum.
 with national          Industry
                                                level training on integrating
 training effort).      Universities            energy efficiency into the
                                                workplace and developing a
                                                new curriculum to fast track for
                                                future energy management
                                                Begin pilot courses with key
                                                industry segments.
 2-4: Create tracking   Utilities               Develop systems.                      Modify and roll-out   Maintain and improve
 and scoring            Industry                Implement on test basis.              to industry           systems based on
 systems to measure                                                                   segments on a         feedback.
 resource efficiency                                                                  phased schedule
 improvements.                                                                        statewide.
 (integrate w/ nat’l                                                                  Coordinate with
 effort)                                                                              ME&O program.
 2-5: Implement         ME&O Task Force         Form industrial collaboration         Launch w/ priority    Modify and roll-out
 ME&O program to        Utilities               mechanisms.                           industry segments.    statewide on a phased
 educate industry       Industry                Develop plan.                                               schedule.
 and consumers                                                                                              Maintain and improve
                                                                                                            systems based on

INDUSTRIAL SECTOR                                                                                                            SECTION 4 – PAGE 49
 Goal 3: Provide centralized technical and public policy guidance for California industrial energy
 and resource efficiency.

 The essence of this strategy is to facilitate                             relationships in the industrial sector. The goal is
 adoption of energy efficiency through centralized                         to provide access for industrial personnel and
 and easily accessed information and resources.                            service businesses to technical information that
                                                                           can be applied in a practical way to industry
 Industrial facilities are not just large buildings
 that can be effectively served by uniform
 programs designed for the commercial sector.                              The clearinghouse will also include information
 The principal use of energy in industrial facilities                      on emerging technologies, and industry-specific
 is to create proprietary products or transform                            research. The clearinghouse will leverage
 materials. Most industrial facilities have                                knowledge developed through other
 management systems in place for materials and                             organizations, including DOE and EPA. Both
 labor but many are still lagging on optimizing                            agencies have developed extensive expertise in
 energy or resource utilization. The goal is to                            industrial energy efficiency through a host of
 provide a single clearinghouse of technical and                           industry-specific programs and partnerships,
 resource management regulatory assistance                                 including a Data Center Efficiency program
 that industries can use for more effective                                under DOE’s Save Energy Now initiative and
 utilization of energy and environmental                                   Laboratories for the 21st Century (Labs21) a
 resources. Ideally, there could be a single                               partnership program co-sponsored by DOE and
 source of knowledge that builds on and fills in                           EPA.47
 the gaps in existing partnerships and

                                               Goal 3: Single Clearinghouse
                                         Implementation Plan and Timeline
      Strategies            Non-CPUC               Near Term                   Short Term            Medium Term
                             Partners             2009 – 2011                  2012 2015              2016 2020
 3-1:Compile technical    Utilities            Inventory existing              Update and          Extend info to include
 and resource             Industry             sources for technical           expand industry     waste disposal and air
 management               Associations         and regulatory                  segment             quality.
 regulatory materials                          assistance for industrial       coverage as
 into centralized                              energy efficiency and           needed.
 assistance repository                         other environmental             Extend to GHG
                                               resource targets.               and water.
                                               Identify and incorporate
                                               priority energy and
                                               other data
                                               Develop clearinghouse
                                               or integration system.

 3-2: Conduct statewide   Utilities            Develop ME&O Plan.              Publicize results   Update and maintain.
 marketing and            Industry             Implement plan.                 of pilots.
 education effort to      Associations                                         Extend statewide.
 create demand for
 Industrial Information

INDUSTRIAL SECTOR                                                                                                           SECTION 4 – PAGE 50
 Energy efficiency will support the long-term economic and
 environmental success of California agriculture.

 5.2       PROFILE
 The agricultural sector accounts for about 7 percent of California’s overall energy,48 a similar percentage
 of its private sector jobs, and around 1.5 percent of the gross state product. In terms of energy efficiency
 (and renewable energy), this sector has seven key end-use subsectors:

    Irrigated Agriculture                                      Greenhouses & Nurseries
    Dairies                                                    Post-Harvest Processing (on and near-frame)
    Refrigerated Warehouses                                    Confined Animal Feeding Operations
    Vineyards & Wineries

 Energy consumption in the agricultural sector is concentrated in three end uses: irrigation, process heat
 applications, and refrigeration. Of these end uses, irrigation pumping accounts for 80 percent of electric
 energy use in the agricultural sector and has average pumping efficiencies of only about 53 percent.
 Opportunities, barriers, and uncertainties that affect the success of energy efficiency in this sector
                                                               associated with emerging or unproven
    Continuing consolidation of farming into
                                                               technologies and practices.
    agribusiness enterprises, concentrating
    decisions affecting energy consumption in the              Continuing rapid evolution of regulations,
    hands of fewer decision makers.                            including new requirements of the Water
                                                               Resources Control Board and Regional Water
    Agricultural operators relying on commodity-
                                                               Quality Controls Boards, and the Air
    specific and often local networks for
                                                               Resources Board and Regional Air Quality
    information on technologies, practices and
                                                               Control Boards, that have no compliance
                                                               coordination and can slow the impetus to
    Lack of up-to-date, statewide, segment-                    adopt energy efficiency technologies and
    specific data on energy consumption and the                practices, as well as the unknown structure of
    potential for energy efficiency (and renewable             the AB 32 regulatory scheme.
    generation) across the sector.
                                                               Expected reductions in surface water supplies
    Reluctance to accept higher first costs                    due to climate change that will increase
    required to realize longer-term financial                  demand for energy-intensive groundwater
    benefits, and to bear production risks                     pumping, making energy efficiency both
                                                               critical and cost-compelling.

 Beyond energy efficiency, agriculture offers a unique opportunity to integrate on-site renewable energy in
 the form of biomass from agricultural field crop residues and biogas from animal wastes from dairy, cattle,
 and poultry farms. While this overall resource management opportunity is highly important, this first Plan
 has not been able to focus specific attention on this item.

AGRICULTURAL SECTOR                                                                                   SECTION 5 – PAGE 51
 5.3         GOALS
 Goals                                                       Goal Results
  1. Establish and maintain a knowledge base sufficient to   By 2015 California agriculture will develop and implement
    support development of all available, cost-effective,    action plans, best practices and educational infrastructure to
    reliable, and feasible energy efficiency, demand         support ongoing improvements in irrigation, refrigeration and
    reduction (and renewable) energy resources.              process heating efficiency, demand response, and
                                                             renewable energy production.

 2. California regulations, financing mechanisms, and        By 2010, key stakeholders will develop a roadmap for
    incentives programs affecting the management of          regulatory and incentives coordination. By 2012, the goals,
    energy, air and water resources, solid waste, and        program designs and funding of such programs for
    climate change will be coordinated to mutual             agricultural energy, air and water improvements will be fully
    advantage.                                               coordinated.
 3. Achieve significant increases in the efficiency of       California agriculture will reduce production energy intensity
    electricity and natural gas use and on-site renewable    by 15% from 2008 levels by 2020.
    energy utilization.

 A central challenge to achieving broader energy              Success in carrying out these strategies for one
 efficiency in the agricultural sector is elevating           of California’s key economic sectors will require
 energy as an agricultural priority. Demonstrating            the collaboration and active engagement of
 how energy efficiency contributes to increased               numerous stakeholders. Among State agencies,
 competitiveness or profitability and to                      key players will be the Department of Food and
 compliance with environmental requirements                   Agriculture (DFA), Department of Water
 (e.g., impending AB 32 regulations) will be                  Resources (DWR), the Energy Commission, and
 essential.                                                   others. At the Federal level, the Department of
                                                              Agriculture and Bureau of Reclamation are
 The overall strategic approach will be to focus
                                                              critical. The agriculture industry associations
 on the largest energy end users first, while also
                                                              obviously will be leaders in this effort, supported
 capitalizing on farming consolidation companies
                                                              by educational institutions, the Cooperative
 and entities that concentrate on energy decision
                                                              Extension service, and the investor-owned and
 making within the sector. The major initial
                                                              publicly-owned utilities serving agricultural
 emphasis will be on the most energy intensive
                                                              energy users. Local government agricultural
 end uses—irrigation, process heating and
                                                              commissioners' offices likely will drive some of
 refrigeration—since these are where the largest
                                                              the marketing education and outreach efforts in
 potential energy and dollar savings are most
                                                              tandem with the statewide ME&O Task Force.
 likely. However, this emphasis will be supported
 by an integrated “whole farm” approach that                  Agricultural sector stakeholders have identified
 evaluates and addresses energy resource                      the single highest priority is to conduct baseline
 management comprehensively.                                  studies to understand the energy usage patterns
                                                              in California’s agricultural sector, forecast likely
 Strategies will expand to target progressively
                                                              changes in the future, determine the energy
 smaller energy consumers, especially early
                                                              efficiency potential in the seven key areas of the
 movers and opinion influencers. Success stories
                                                              sector, and evaluate the cost-effectiveness of
 from both large- and smaller-scale agricultural
                                                              measures and programs, best practices, etc.
 enterprises will be widely disseminated
                                                              Without this basic information, it is impossible to
 throughout the sector to build both awareness of
                                                              implement a cohesive strategy to pursue all
 and enthusiasm for whole farm approaches
                                                              cost-effective energy efficiency in California.
 targeting energy efficiency.

AGRICULTURAL SECTOR                                                                                              SECTION 5 – PAGE 52
 Two additional items are central to the success of all three goals:

    Marketing, Education and Outreach: There                  Workforce Training: There must be a
    must be a defined, comprehensive, long-term               statewide focus on the workforce needs to
    marketing, education, and outreach program                achieve the goal, with adequate funding and
    to inform the agricultural sector and                     support for development of the needed
    consumers regarding the goal and key                      workforce.

 Goal 1: Establish and maintain a knowledge base sufficient to support development of all
 available, cost-effective, reliable, and feasible energy efficiency, demand reduction (and
 renewable) energy resources.

 Absent a better understanding of the current and          then be developed and recognized for their
 forecasted energy use in California’s agricultural        knowledge in how to apply efficiency and
 sector, energy efficiency potential, successes            resource solutions to individual agri-business
 and failures to date, it will be impossible to            operations.
 implement significant energy efficiency in this
                                                           The search for solutions will not stop with
 sector, much less provide the cost-saving
                                                           existing technologies and practices. There will
 opportunities that energy efficiency offers.
                                                           be a focused effort to develop new technologies
 Therefore, the single most important strategic
                                                           and applications that can help achieve multiple
 step – needed to be done immediately – is to
                                                           resource management goals. For example,
 conduct studies that will provide the necessary
                                                           opportunities exist to leverage knowledge from
 information and to then make that information
                                                           the industrial sector to apply to key processes
 available on a statewide data base.
                                                           driving energy consumption in the agricultural
 Once developed, it is essential to place this             sector – such as for pumping, boiler operations
 knowledge in the hands of agricultural                    and refrigeration. Another strategy will be better
 professionals and operators through appropriate           coordination of knowledge being developed by
 education, training, and field-based extension            the now unconnected Federal and State
 activities. This must start with a needs                  agricultural and energy research programs,
 assessment, followed by development of                    agricultural equipment manufacturers, utility
 curricula, training modules, and supportive tools         promotion of emerging technologies, and
 that can access and leverage the content of the           agricultural extension programs to individual
 newly created knowledge base. Trained and                 farms and production facilities.
 experienced advisors and farm operators can

AGRICULTURAL SECTOR                                                                                 SECTION 5 – PAGE 53
                                        Goal 1: Energy Efficiency Knowledge Data Base
                                           Implementation Plan and Timeline

     Strategies          Non-CPUC                      Near Term                        Mid Term               Long Term
                          Partners                    2009 – 2011                      2012 2015               2016 2020
 1-1: Develop           Utilities           Conduct an energy use                    Develop framework        Ongoing refinement
 knowledge base of      CDFA                characterization and efficiency          for common               and maintenance.
 efficiency solutions   DWR                 potential study for the statewide        agricultural data
                                            agricultural market. Include potential   base.
                        Agriculture         for waste streams to offset energy
                        Industry                                                     Establish central
                                            consumption. Study plan (6/2009)         clearinghouse for
                                            and study completed (12/2010).           technical, program,
                                            Collect data on key programs and         regulatory, and
                                            measures, best practices for energy      incentive information.
                                            efficiency in the agricultural sector.
                                            Study complete (6/10)
 1-2: Ensure            Utilities           Conduct workforce training needs         Develop training and     Training &
 workforce has          WE&T Task           assessment and next steps                education tools for      education activities
 information and        Force               (12/2010)                                use of date base and     are fully rolled-out.
 training necessary     Educational         Develop training curricula and           benchmarking             Certification
 to apply efficiency    Institutions        modules identified by needs              methods                  programs are in
 solutions                                  assessment. (12/2011)                    Begin pilot training &   place.
                        industry                                                     education programs.

 1-3: Conduct           Energy              Conduct an Energy Technologies/          Ongoing                  Ongoing
 research &             Commission          RD&D gap analysis. Identify and          identification,          identification,
 development of new     Utilities           prioritize needed RD&D/ET projects.      prioritization and       prioritization and
 technologies and       National Labs       (12/2010)                                execution of             execution of
 practices for                              Coordinate research activities across    ET/RD&D projects.        ET/RD&D projects.
 agricultural           Agriculture
                        Industry            government, utilities, agricultural
 efficiency                                 extension and university programs,
                                            and equipment manufacturer
                                            proprietary efforts.

 Goal 2: California regulations, financing mechanisms, and incentives programs affecting the
 management of energy, air and water resources, solid waste, and climate change will be
 coordinated to mutual advantage.

 Increasingly, the agricultural sector is subject to                        efficiency as a successful strategy to implement
 water use, water quality, air quality, solid waste,                        the goals across all programs. Specific
 and soon global warming requirements. Energy                               programs warranting coordination are: water
 efficiency, particularly when linked to water                              conservation and quality improvement funding,
 conservation, can be a key strategy to achieve                             Energy Commission Emerging Technology
 goals in these other areas. Yet currently, there                           funds, local air quality improvement funds,
 is no coordination at the State, local or Federal                          Federal tax credits, Rural Energy for America
 level to optimize the use of energy efficiency in                          Program (REAP) under the Federal Food,
 meeting multiple resource objectives.                                      Conservation and Energy Act of 2008 (Farm Bill)
                                                                            and utility energy efficiency incentives.
 A multitude of programs – currently
 uncoordinated – operate in the agricultural                                One of the most important goals for agriculture
 sector that address the sector’s use of energy,                            is to develop a forum or process involving
 air and water. Better coordination of these                                multiple stakeholders to coordinate technical
 programs would lead to enhanced use of energy                              energy efficiency solutions and program designs

AGRICULTURAL SECTOR                                                                                                       SECTION 5 – PAGE 54
 (e.g., knowledge bases, technical assistance,                       range of environmental management policies
 financing, and financial incentives) across the                     and goals.

 Strategies will include:

    Integrated Resource Management:                                    Financing: Developing common technical
    Setting up a common framework for resource                         and financial assistance energy efficiency
    management that can better leverage and                            strategies most appropriate in the agricultural
    “piggyback” multiple resource management                           sector for achieving specific program
    programs to support increased adoption of                          objectives (e.g. deciding among grants vs.
    energy efficiency, demand response and                             loans vs. rebates; structuring appropriate
    onsite generation opportunities integrated with                    financial programs sensitive to preferences
    efforts to attain air, water, and solid waste                      among traditional financing vs. performance
    objectives.                                                        contracting; and utilizing technical assistance
                                                                       advisors and expertise to deliver integrated
                                                                       solutions across multiple objectives).


 The goal is to provide one-stop-shopping                            the mechanism for implementing the strategy.
 assistance to both program sponsors and the                         The task force will provide both a forum for
 agricultural operators targeted by energy, air                      alignment and leveraging of program goals,
 and water programs. This will assist program                        designs and funding, and a clearinghouse for
 sponsors in tailoring their programs to the                         program information and coordination. The
 unique needs and preferences of agricultural                        California Department of Food and Agriculture
 operators, and prospective program participants                     (CDFA) is developing a California Agricultural
 in understanding program opportunities and                          Vision through 2030, which may provide a useful
 requirements and in efficiently accessing and                       opportunity to launch this forum.49
 participating in programs.
                                                                     The immediate focus of the task force will be on
                                                                     identifying and mitigating existing conflicts in
 A task force including representatives of all
                                                                     programs operating across energy, air, water
 major sources of agricultural expertise,
                                                                     and solid waste concerns within the agricultural
 financing, and incentives targeting energy, air,
 water and solid waste concerns is envisioned as

                                 Goal 2: Coordination of Programs and Funding
                                   Implementation Plan and Timeline
   Strategies      Non-CPUC                Near Term                          Mid Term                    Long Term
                    Parties               2009 – 2011                        2012 2015                    2016 2020
 2-1: Set         Utilities        Establish a task force to            Establish a central database   Continue to modify and
 reasonable and   CDFA             coordinate resource                  to track and coordinate        refine approaches for
 achievable       DWR              management policies, action          available programs.            integrated solutions.
 objectives and                    goals, and program designs           Undertake pilot integrated
 framework for    Industry         targeting California’s
                  participants                                          approaches.
 agriculture to                    agricultural sector.                 Refine program designs and
 attain multi-                     Identify where goal conflicts        support based on
 resource                          arise and resolve these              experience.
 management                        conflicts.
 goals                             Assess potential for integrated

AGRICULTURAL SECTOR                                                                                                SECTION 5 – PAGE 55
                                     Implementation Plan and Timeline
   Strategies      Non-CPUC                 Near Term                             Mid Term                     Long Term
                    Parties                2009 – 2011                           2012 2015                     2016 2020
 2-2 Coordinate   Financing Task    Identify the programs and            Identify approaches to cross-   Continue to modify and
 technical        Force             major funding sources affecting      market and leverage resource    refine approaches for
 assistance,      Utilities         the management of energy, air        management goals across         integrated solutions.
 funding, and     Financial         and water resources, and             programs, funding, and
 incentive        Institutions      climate change.                      technical assistance.
 mechanisms                         Create a collaborative forum to
                  Industry          facilitate sharing of information
                                    and coordination of programs.

 Goal 3: Achieve significant increases in the efficiency of electricity and natural gas use and on-
 site renewable energy utilization, including setting a specific target for irrigation efficiency.

 Because irrigation accounts for 80 percent of the electricity used in the agricultural sector and current
 pumping efficiencies are so low, a specific goal targeting improvement in this area is warranted. Two
 other areas that warrant specific focus are higher efficiency with refrigeration and process heating from
 natural gas.
 Strategies needed to achieve this goal include identification and adoption of management best practices
 and highly efficiency equipment. Specific areas of focus will include targeting energy efficiency
 opportunities from:

    Onsite source-water reduction                                         Pressure reduction in irrigation
    Retro-commissioning                                                   Waste heat recovery and other gas-savings
    Precision agriculture
                                                                          Improved industrial refrigeration practices and
    Advanced irrigation systems


 One of the emerging energy efficiency practices                        identifying profitable opportunities for efficiency
 to guide end users in their efficiency actions is                      improvements.
 the use of “benchmarking”. This is premised
                                                                        Achieving real savings in agriculture will be
 upon developing a best practice standard and
                                                                        founded upon a compelling financial case to
 supporting systems that enables individual end
                                                                        decision-makers in agricultural sub-sectors and
 users to analyze their energy usage compared
                                                                        individual companies. The strategy will identify
 to the benchmark. The EPA has developed a
                                                                        the most effective communication channels,
 benchmark tool for existing commercial buildings
                                                                        partners, and messages to deliver to these
 and pursuant to State law50 utilities are working
 with commercial customers to expand use of
 benchmarking and help customers identify                               Recognizing that irrigation accounts for the
 actions to save energy. Development of similar                         predominant share of electricity, both on-farm
 benchmarking tools for each agricultural sub-                          and in the statewide delivery of water, pilot
 sector – starting first with the irrigated agriculture                 programs and evaluation will be used to identify
 subsector and then expanding to other                                  the embodied energy savings associated with
 subsectors – would be an important strategy in                         water efficiency gains. This will be a critical step
                                                                        in linking energy and water efficiency strategies.

AGRICULTURAL SECTOR                                                                                                     SECTION 5 – PAGE 56
                                              Goal 3: Capturing Energy Efficiency

                                          Implementation Plan and Timeline
      Strategies              Non-CPUC                   Near Term                     Mid Term            Medium Term
                               Partners                 2009 – 2011                   2012 2015             2016 2020
 3-1 Make information      Utilities             Develop benchmarking                Apply feedback and    Ongoing refinement
 on efficiency solutions   Agricultural          resources, tools and methods        refine benchmarking   and maintenance
 readily available         Industry              for the agricultural sub-sectors.   tools.
                                                 Implement focused program for       Expand programs.
                                                 irrigation efficiency,
                                                 refrigeration, and process
 3-2 Conduct marketing     ME&O Task Force       Develop ME&O strategy,              Launch statewide      Ongoing refinement
 & outreach                Utilities             addressing communication            program               and maintenance
                           Agriculture           channels, partners, and
                           Industry              effective messaging.
                                                 Begin pilot implementation
 3-3 Resolve metrics       State water           Update evaluation                   Measure and           Ongoing
 for embedded energy       agencies              measurement & verification          evaluation all
 in water savings          Agriculture           protocols to define energy          embedded energy
                           Industry              impacts of water efficiency         savings associated
                           Energy and Water      actions.                            with irrigation and
                           utilities                                                 process efficiency.

AGRICULTURAL SECTOR                                                                                                   SECTION 5 – PAGE 57
  6.1      VISION
  Residential and small commercial heating, ventilation,
  and air conditioning (HVAC) will be transformed to
  ensure that technology, equipment, installation, and
  maintenance are of the highest quality to promote
  energy efficiency and peak load reduction in
  California’s climate.

  6.2      PROFILE
  The rapid growth in air conditioning in                                   In 1976, 25 percent of new California homes had
  California’s commercial buildings and homes                               central air conditioning. Today, it is 95 percent,
  has made it one of the state’s largest energy-                            and new home size has increased by more than
  consuming end uses and the single largest                                 half. These increases have resulted in a greater
  contributor to peak demand—and a leading                                  than seven-fold increase in the electricity
  opportunity to improve energy efficiency and                              capacity to meet this load.
  reduce peak power demand.
                                                                            By 2006, peak demand for residential air
  Accordingly, one of the three initial                                     conditioning units was 14,316 MW. When small
  Programmatic Initiatives (“Big, Bold Energy                               commercial air conditioning is added to the
  Efficiency Strategies”) adopted by the                                    residential share, air conditioning loads cause
  Commission in October 2007 is to “reshape                                 over 30 percent of California’s total peak power
  residential and small commercial HVAC to                                  demand in the summer—with an enormous and
  ensure optimal equipment performance.” The                                costly impact on the need for generation,
  initiative targets a 50 percent improvement in                            transmission, and distribution resources and a
  efficiency in the HVAC sector by 2020, and a 75                           concurrent reduction of utility load factors.
  % improvement by 2030.

                                         Growth in Residential Dwellings with Central Air Conditioning
                                         - Single Family and Multi Family Units from 1970 to 2007



            Dwelling Units













HEAT ING VENTILATION AND AIR CONDITIONING                                                                               SECTION 6 – PAGE 58
  Unfortunately, as air conditioning was becoming         AB 2021 (Levine, 2006) required the Energy
  nearly ubiquitous in new California buildings,          Commission to investigate options and develop
  installation and maintenance practices suffered         a plan to improve the energy efficiency of, and to
  substantially. The HVAC industry has struggled          decrease the peak electricity demand of, air-
  to provide qualified technicians, and market            conditioners.” The Energy Commission’s
  conditions rarely value quality installation and        subsequent report, “Strategic Plan to Reduce
  maintenance (QI/QM). Less than 10 percent of            the Energy Impact of Air Conditioners”,53
  HVAC systems obtain legally required pre-               estimated potential cumulative savings from
  installation local building permits and 30-50           higher quality installation in the residential and
  percent of new central air conditioning systems         small commercial markets at 1,216 GWh and
  are not being properly installed. Californians          1,096 MW by 2020. The estimated cumulative
  have paid a large price for the lack of quality         savings from accelerated introduction of more
  installation and maintenance, with                      efficient cooling technologies is 1,272 MW and
  commensurate poor performance. The factors              peak shifting technologies is 2,299 MW by 2020.
  that have led to a 20-30 percent increase in the        The content of this chapter draws heavily from
  peak energy needed to provide consumers with            the CEC report, and the strategies set forth in
  the cooling and comfort they demand on hot              this plan mirror those of the report’s
  summer afternoons52 has been accompanied by             recommendations.
  an estimated 30 percent increase in carbon

  HVAC is regulated in California by the Energy Commission’s Title 20 and Title 24 appliance and building
  codes and by Federal appliance standards. These codes and standards have become increasingly
  stringent in recent years, along with related activities such as the promotion of Energy Star-compliant
  units. But numerous barriers reduce the effectiveness of the codes and standards including:

    The Federal standards use a single, national             Consumer markets focus on lowest first cost,
    air conditioning metric that does not robustly           and ignoring operating costs.
    measure—never mind promote—the perform-
                                                             Installation and maintenance practices are
    ance of air conditioners in hot, dry conditions
    such as California.
                                                             Building design practices do not take an
    Federal law pre-empts California’s ability to
                                                             integrated systems approach to lessen the
    set its own air conditioning efficiency
                                                             need for HVAC.

  6.3 GOALS
  Goal                                                   Goal Results
  1. Consistent and effective compliance, enforcement,   HVAC-related permits are obtained for 50 percent of
     and verification of HVAC-related building and       installations by 2015 and 90+ percent by 2020.
     appliance standards.
  2. Quality installation and maintenance becomes the    By 2020 100 percent of systems are installed to quality
     industry and market norm.                           standards and optimally maintained throughout their useful

HEAT ING VENTILATION AND AIR CONDITIONING                                                                 SECTION 6 – PAGE 59
  3. Whole building design and construction practices fully   Integrated design and construction practices are standard
     integrate building performance to reduce cooling and     practice by 2020.
     heating loads.

  4. Develop new hot/dry climate HVAC technologies            For at least 15 percent of equipment shipments by 2015 and
     (equipment and controls, including system diagnostics)   70 percent by 2020.
     and greatly accelerate their marketplace penetration.

  6.4            STRATEGIES
  To achieve the Commission’s adopted                          stakeholders—such as manufacturers,
  Programmatic Initiative of transforming the                  distributors, and contractors—to coordinate
  HVAC market and the four specific goals                      industry sponsorship of and participation in
  identified above, broad-based and aggressive                 HVAC strategies. Membership should also
  strategies are needed that involve many                      include other key players, such as the CPUC,
  stakeholders beyond the Commission and IOUs.                 Energy Commission utilities, building
  An HVAC Advisory Group should be chartered                   owners/managers, consumers, and the Federal
  to involve high-level HVAC industry                          government.

  Goal 1: Consistent and effective compliance, enforcement, and verification of applicable building
  and appliance standards.

  California law requires contractors to obtain a              aspects of HVAC quality installation, including
  permit for the installation of new HVAC                      equipment, installation and ducts. The Energy
  equipment (including replacements of existing                Commission’s June 2008 HVAC report has
  equipments) and to perform quality control                   recommended that the Energy Commission
  checks. Yet less than 10 percent of contractors              consider making the ACCA or similar
  obtain such permits and a similar percent of                 requirements mandatory for all HVAC
  installers fail to perform quality control checks or         installations, in lieu of Title 24’s current optional
  have their work verified by third-party raters.              requirement. Energy Commission action to
  Failure to ensure quality at the time of cooling             change its optional standards to mandatory
  system installations results in a 20 to 30 percent           quality control provisions is critical.
  increase in the peak energy needed by systems.
                                                               Changing the status quo will require significant
  This problem is exacerbated by Title 24                      effort, since contractors who comply with HVAC
  provisions that allow optional compliance with               code provisions incur higher costs that are
  HVAC quality control requirements; a contractor              difficult to pass onto customers in a highly
  may install higher efficiency measures in a new              competitive market. Such contractors may also
  building in lieu of the quality installation and             experience delays due to local government
  control requirements. The Air Conditioning                   permit timelines. Local building officials may not
  Contractors of America (ACCA) recently                       have the resources or knowledge to establish
  developed a quality installation (QI) specification          streamlined permitting systems that support
  for air conditioning equipment that has become               quality HVAC installations and penalize
  an American National Standards Institute (ANSI)              contractors who do not comply.
  standard. It is comprehensive, addressing all

  Strategies to achieve significantly improved compliance include:

HEAT ING VENTILATION AND AIR CONDITIONING                                                                      SECTION 6 – PAGE 60
                                                                                      installed in compliance with all applicable
     Streamlining local government permitting and
                                                                                      State energy codes.
     licensing processes, beginning with pilot
     programs.                                                                        Actively enforcing penalties for contractors
                                                                                      who do not pull required permits or who
     Changing the building code by replacing the
                                                                                      operate without the appropriate licenses.
     current optional quality control requirements
     with mandatory requirements.                                                     Development of an internet-based system that
                                                                                      tracks the status of compliant equipment —
     Improving the current processes for inspecting
                                                                                      from the initial sale to contractors to the final
     and verifying system installations including
                                                                                      quality check performed by third parties in the
     tracking the installation of all new and
     replacement equipment, to ensure they are

                                                    Goal 1: Improve Code Compliance
                                                   Implementation Plan and Timeline
                                 Non-CPUC                     Near Term                            Mid Term                      Long Term
                                  Partners                   2009 – 2011                          2012 2015                      2016 2020
 1-1: Develop streamlined      Local                  Convene an industry/local             Revise pilots and expand to        Expand statewide.
 local government HVAC         Governments            government stakeholder                other cities; develop
 permitting systems,           CALBO                  group; develop proposed new           framework for statewide
 including on-line HVAC        Utilities              system; pilot test with local         program.
 replacement permitting.                              governments
 1-2: Streamline process       Local                  Pilot test process with local         Revise pilot and expand pilot      Expand statewide.
 for obtaining contractor      Governments            building departments.                 testing to other cities; develop
 business licenses for         CALBO                                                        framework for statewide
 multiple jurisdictions.                                                                    program.
                               Calif. Contractor
                               State License
 1-3: Replace Title 24’s       Energy                 Adopt ANSI standards into             Explore steadily higher            Ongoing
 current optional quality      Commission             Title 24; integrate into              QI/QM standards as baseline
 control requirements with     ACCA/ANSI              existing utility program              becomes commonplace.
 mandatory requirements        Utilities              designs.
 specification).               Contractors

 1-4: Consider developing      Utilities              Convene stakeholder group;            If recommended for                 Expand statewide if
 an internet-based system      Local                  develop details of proposed           development; pilot test.           pilot testing is
 that tracks the status of     Governments            system and determine                                                     successful.
 equipment, from the initial   CALBO                  whether to proceed.
 sale to final quality check
 in the field.                 Distributors
 1-5: Enforce penalties for    Local                  Pilot test local government           Expand pilot programs;             Fully implement
 contractors who do not        Governments            fines in lieu of contractor           Continue phase-in of               mandatory
 pull permits for the          CA Contractor          license suspension; expand            mandatory enforcement              enforcement.
 replacement and               State License          SMUD program to IOUs                  activities.
 installation of space         Board                  (proof of quality installation
 cooling systems or those      Contractors            req’d for rebate); identify local
 who operate without the                              govn’t resources needed for
 appropriate license.          Utilities              enforcement; establish action
                                                      plan to phase-in mandatory

HEAT ING VENTILATION AND AIR CONDITIONING                                                                                           SECTION 6 – PAGE 61
  Goal 2: Quality HVAC installation and maintenance becomes the norm. The marketplace
  understands and values the performance benefits of quality installation and maintenance.

  Quality HVAC installation and maintenance            Technician Excellence or other industry groups
  (QI/QM) is currently the exception, not the norm.    that wish to offer the same high quality brand.
  Achieving this goal will require a major             This branding effort could be tied to utility
  transformation in both markets and behavior.         programs, such that only customers or
  Consumers need education on the value of             contractors who use the brand receive
  properly installed and maintained systems, need      incentives.
  to demand it, and the service industry needs
                                                       A consumer marketing and education campaign
  proper education, training, and certification to
                                                       about the value of HVAC QI/QM can introduce
  then meet consumer demand.
                                                       and stimulate the demand for the new brand—
  Strategy 1-3 under Goal 1 above is to replace        communicating that quality work results in
  the Energy Commission’s current Title 24             increased comfort, improved air quality and
  optional quality control approach with a             higher energy and cost savings. Development
  mandatory requirement, such as the                   and launch of the quality brand should be
  ACCA/ANSI standard. If this is done, then a          supported with the appropriate level of
  logical next step is to develop a label that would   behavioral studies to assess the market
  be attached to residential or small commercial       transformation impacts of the brand and ensure
  HVAC installations by a third-party rater. Even      that utility incentives linked to use of a statewide
  before a change in the Title 24 requirements, a      brand are effective in changing consumer and
  statewide brand program could be developed to        contractor behavior.
  benchmark and recognize and/or certify quality
                                                       A concurrent strategy needed to achieve this
  installation and maintenance and high levels of
                                                       goal is the development of adequate workforce
  HVAC technician competence. This effort could
                                                       education and training for HVAC
  be done by California alone, with other
                                                       contractor/owners, service and installation
  southwestern states, or on a national basis. The
                                                       technicians, sales representatives and building
  brand would be used in at least two ways -
                                                       officials. The first step is to conduct a
  affixed to equipment to certify the equipment has
                                                       comprehensive needs assessment that will
  been installed pursuant to QI/QM requirements
                                                       identify industry skill gaps and form the basis of
  and made available for use by contractors who
                                                       an effective action plan to address these gaps.
  voluntarily ensure a high proportion (perhaps 90
                                                       After that, support should be provided to certify
  percent) of their workers have received high-
                                                       new trainers and courses and provide incentives
  quality certification from North American
                                                       directly to technicians who complete training.

HEAT ING VENTILATION AND AIR CONDITIONING                                                        SECTION 6 – PAGE 62
                                      Goal 2: Quality HVAC Installation and Maintenance
                                         Implementation Plan and Timeline
                                   Non-CPUC             Near Term                   Mid Term               Long Term
                                    Partners           2009 – 2011                  2012-2015              2016 2020
 2-1: Create and launch a         ME&O Task        Create and launch             Ongoing                   Ongoing
 statewide Quality Installation   Force            statewide quality brand
 and Maintenance (QI/QM)          Utilities        and/or align with national
 brand that will be attached to   HVAC industry    brand and launch
 systems/installations/                            supporting marketing
 contractors that meet quality    Retailers        activities.
 standards.                                        Develop operating and
                                                   lifecycle data on
                                                   economic and comfort

 2-2: Launch a consumer           Utilities        Develop and launch            Ongoing                   Ongoing
 marketing and education          HVAC industry    campaign.
 campaign to support the brand    Local
 2-3: Develop and provide         WE&T Task        Conduct comprehensive         Assess impact of          Ongoing
 expanded QI/QM training for      Force            training needs                training activities and
 contractors, technicians and     Utilities        assessment to indentify       update needs
 sales agents.                    HVAC Industry    industry skill gaps; begin    assessment as
                                  Educational      expanded training             required.
                                  institutions     programs.                     Expand training
                                  Labor Unions                                   programs statewide,
                                  CSLB                                           particularly at the
                                  NATE                                           vocational/technical
                                                                                 and community
                                                                                 college levels.
 2-4: Develop and implement       HVAC Industry    Develop accreditation         Expand program            Statewide
 comprehensive contractor         Energy           program requirements;                                   certification
 accreditation program            Commission       begin implementation.                                   program
                                  Labor Unions
                                  WE&T Task
 2-5:Conduct ongoing              Utilities        Identify and undertake        Integrate study           Ongoing
 behavioral studies to ensure     HVAC Industry    studies.                      findings into
 strategies are effective                                                        revised/updated
                                                                                 strategies and

  Goal 3: Building industry design and construction practices that fully integrate building
  performance to reduce cooling and heating loads.

  Both the Residential and Commercial Sector                           to achieve truly aggressive energy efficiency
  Chapters address the need for “whole building”                       savings. One key goal of this overall effort must
  design and implementation in California, in order                    be building performance that improves space

HEAT ING VENTILATION AND AIR CONDITIONING                                                                                  SECTION 6 – PAGE 63
  conditioning, by dramatically reducing cooling                      be needed in current design and building
  and heating loads. Fundamental changes will                         practices.

  Specific design and building changes addressing HVAC performance include:

    Placing more emphasis on the whole building                            Incorporating ductless systems, radiant
    as a complete interactive system and                                   heating and cooling, ground source heat
    improving the thermal integrity of structures to                       pumps and thermal energy storage
    reduce heating and cooling loads.                                      technologies with overall higher efficiencies.
    Moving ducts and equipment off the roof and
    out of hot attics.

  Equally important, strategies are needed to                         design and implementation. Those strategies
  change behavior. The Residential and                                need to include focus on the HVAC industry as a
  Commercial Sector Chapters address behavioral                       key player.
  change strategies to promote whole building

                                              Goal 3: Whole-Building Design
                                         Implementation Plan and Timeline
                             Non-CPUC               Near Term                      Mid Term                  Long Term
                              Partners             2009 – 2011                    2012 2015                  2016 2020
  3-1: Aggressively      Utilities            Pilot targeted programs.         Include standard            Incorporate radiant
 promote whole           HVAC industry        Incorporate radiant              program offerings that      cooling, ductless
 building design         Architects           cooling, ductless systems,       emphasize HVAC-             systems, ground
 concepts that                                ground source heat               related elements to         source heat pumps,
 improve the overall     Builders and                                          whole building
                                              pumps, etc. into 5 percent                                   etc. into 50 percent or
 thermal integrity of    Contractors                                           approaches. Incorporate
                                              of new and existing                                          more of new and
 new and existing        Local Governments    construction by 2011.            radiant cooling, ductless   existing construction
 structures.                                                                   systems, ground source      by 2020.
                                                                               heat pumps, etc. into 25
                                                                               percent or more of new
                                                                               and existing
                                                                               construction by 2015.
 3-2: Accelerate         ASHRAE               Evaluate and update              Ongoing                     Ongoing
 activities related to   Energy Commission    existing standards to
 HVAC aspects of         Utilities            include increased
 whole building                               emphasis on HVAC
 industry design         Manufacturers        aspects of whole building
 standards.              AHRI                 approaches.
  3-3: Accelerate        Colleges/            Develop continuing               Expand statewide.           Ongoing
 HVAC related            Universities         education programs.              Develop university
 aspects of whole        Utilities            Begin curriculum use.            degree level programs.
 building design in      Department of
 the educational and     Education

HEAT ING VENTILATION AND AIR CONDITIONING                                                                                SECTION 6 – PAGE 64
                                       Implementation Plan and Timeline
                           Non-CPUC               Near Term                     Mid Term              Long Term
                            Partners             2009 – 2011                   2012 2015              2016 2020
 3-4: Accelerate       Energy Commission    Implement optional code         Establish mandatory     Ongoing
 code-based            Local Governments    improvements necessary          whole building code-
 solutions to          Utilities            to facilitate moves to          based solutions.
 improving the                              whole building design
 thermal structural                         approaches
 integrity and
 alternative cooling
 methods into
 building designs.
 3-5. Sponsor design   Utilities            Conduct first competition       Annually                Annually
 competitions to       Foundations          in 2010 and annually
 encourage builders    Industry             thereafter.
 to design and build
 homes with net zero   Builders and
 peak demands          Contractors

  Goal 4: Develop new hot/dry climate HVAC technologies (equipment and controls, including
  system diagnostics) and greatly accelerate their marketplace penetration.

  This goal requires coordinated development and use of new and improved HVAC technologies
  (equipment and controls, including two-way demand response and onboard diagnostics) that perform
  better in California’s climate.
  The strategies to achieve this goal include:
                                                                        equipment are also required, including
    Develop a regional (southwest) strategy:
                                                                        continued upgrading of codes and standards.
    Because advanced technology development
                                                                        Any economic analysis must include on-peak
    and market penetration has a regional impact,
                                                                        energy resource values and resulting peak-
    it would be advantageous to draw participants
                                                                        specific standards.
    from other states experiencing similar
    increasing air conditioning loads (e.g.,                            Commercialize on-board diagnostic
    Nevada, Arizona, New Mexico and perhaps                             systems: Such systems automatically collect
    Texas). The focus would be on working with                          data and alert consumers and/or contractors
    DOE to develop new cooling systems with                             when a fault or negative performance trend is
    technology and designs that reflect California                      detected. These diagnostics will result in
    and similar hot/dry climate conditions.                             energy benefits by helping ensure that HVAC
                                                                        systems are maintained and operate within
    Expand HVAC-related R&D: Past
                                                                        design specifications. While many
    improvements in HVAC energy efficiency
                                                                        manufacturers currently offer either “on board”
    have been the result of R&D by the HVAC
                                                                        systems or hand-held ones that work with all
    manufacturers, utilities, government, and
                                                                        systems, none are widely used by consumers
                                                                        or contractors. Actions to accelerate the
    Support incremental improvements to                                 commercialization of such diagnostics include:
    HVAC equipment. Because highly advanced
                                                                         Prioritizing in-field diagnostic and
    cooling technologies will only penetrate small
                                                                         maintenance approaches based on the
    portions of the total market at a time,
                                                                         anticipated size of savings, cost of repairs,
    incremental improvements in standard HVAC
                                                                         and the frequency of faults occurring

HEAT ING VENTILATION AND AIR CONDITIONING                                                                      SECTION 6 – PAGE 65
      Benchmarking of existing diagnostic, repair                               functionality and specifications for
      and maintenance protocols                                                 designated sensor mount locations.
      Developing nationwide standards and/or                                    Aggressive promotion of diagnostic systems
      guidelines for onboard diagnostic                                         as a standard offering on all HVAC

  In addition to technology development, a key strategy to achieve this goal is education of contractors and
  consumers about the advanced technologies’ availability and value, as well as education and training of
  service technicians, particularly on the use of diagnostic systems.

                                 Goal 4: New HVAC Technologies and System Diagnostics
                                              Implementation Plan and Timeline
                                   Non -CPUC              Near Term                     Mid Term             Long Term
                                    Partners             2009 – 2011                   2012 2015             2016 2020
 4-1: Pursue regional climate    DOE                 Develop recommended             Regional climate      Ongoing
 optimized equipment             Utilities           standards and present to        optimized standards
 standards through DOE           Nat’l Labs          DOE.                            adopted by DOE.
 rulemaking process.
                                 HVAC industry
 4-2: Update “Total Avoided      Energy              Evaluate, revise and            Maintenance           Maintenance
 Cost Model” and Title 24        Commission          update as needed.
 “Time Dependent Valuation”      Utilities
 calculations, including use
 of peak energy values.
 4-3: Accelerate market          Utilities           Conduct a                       Provide necessary     Continue to provide
 penetration of advanced         Energy              comprehensive cost-             program incentives    necessary program
 technologies by                 Commission          benefit analysis of leading     to ensure that        incentives to ensure
 updating/expanding current                          and prospective                 advanced              that advanced
 programs to include the new                         advanced technologies,          technologies          technologies represent
 technologies as appropriate                         and use to prioritize           represent 30          50 percent of systems
                                                     incentive offerings and         percent of the        sold by 2020.
                                                     deployment strategies           systems sold by
                                                     Establish an incubator          2015.
 4-4: Adopt a progressive set    Energy              Enhance and accelerate          Ongoing               Ongoing
 of building codes that          Commission          the deployment of Title
 support the deployment of       Utilities           20/24 codes.
 peak efficient equipment.       AHRI
 4-5: Develop nationwide         Manufacturers       Establish an industry-          Incorporate           Ongoing
 standards and/or guidelines     Utilities           wide task force to develop      diagnostic
 for onboard diagnostic          Trade               national standard               standards into
 functionality and               Associations        diagnostic protocols.           equipment codes.
 specifications for designated                       Begin implementation.
 sensor mount locations.         AHRI

HEAT ING VENTILATION AND AIR CONDITIONING                                                                              SECTION 6 – PAGE 66
                                           Implementation Plan and Timeline
                                  Non -CPUC            Near Term              Mid Term            Long Term
                                   Partners           2009 – 2011            2012 2015            2016 2020
 4-6: Prioritize in-field       Manufacturers     Benchmark existing        Commercialize on-   Incorporate mandatory
 diagnostic and maintenance     Utilities         diagnostic, repair and    board diagnostic    onboard diagnostic
 approaches based on the        Trade             maintenance protocols     systems.            systems in California
 anticipated size of savings,   Associations      and develop appropriate                       building codes.
 cost of repairs, and the                         products.
 frequency of faults            AHRI
 occurring.                     ASHRAE

HEAT ING VENTILATION AND AIR CONDITIONING                                                                  SECTION 6 – PAGE 67
 7.1      VISION
 A broad range of aggressive and continually improving
 minimum and higher voluntary sets of energy codes and
 standards will be adopted to greatly accelerate the wide-
 spread deployment of zero-net energy and highly
 efficient buildings and equipment. The effectiveness of
 codes and standards will be enhanced by improved
 code compliance as well as coordinated voluntary
 efficiency activities.

 The ambitious goals of this Plan as well as greenhouse gas imperatives place an unprecedented reliance
 on mandatory codes and standards—both on energy codes for new and renovated buildings and on
 efficiency standards for appliances and equipment—and pressure for them to perform.

 There is no policy tool more essential for the         The effectiveness of energy codes and
 widespread and persistent transformation of            standards is beyond debate—the Energy
 energy performance in California than energy           Commission’s 2007 Integrated Energy Policy
 codes and standards. For thirty years, California      Report56 finds that: “California’s building and
 has aggressively and successfully used its two         appliance standards have saved consumers
 principal frameworks for regulating minimum            more than $56 billion in electricity and natural
 energy performance—Title 24 building energy            gas costs since 1978 and averted building 15
 codes and Title 20 appliance standards55—to            large power plants. It is estimated the current
 cost-effectively reduce the energy consumption         standards will save an additional $23 billion by
 of commercial buildings, homes, and appliances.        2013.”

 The appeal of codes and standards for promoting energy efficiency is simple: they make better energy
 performance mandatory, and not just for early adopters or self-selected consumers but for all users of
 regulated products and structures. Codes and standards’ impact, while enormous, can be enhanced and
 made even more successful and cost-effective if they are:
                                                          State efficiency standards, AB 32, ambient air
   Capturing a wide range of economically viable
                                                          quality rules and local government
   technologies and building practices, including
                                                          development policies.
   integrated DSM approaches.
                                                          Applied more comprehensively to end uses,
   Coordinated with non-regulatory market
                                                          including plug loads and building operations.
   transformation efforts, such as utility
   incentives and rebates, Energy Star and other          Supported by better enforcement and
   benchmarking programs, and builder and                 compliance at local levels.
   consumer education efforts that pave the way
                                                          Reliant on more sophisticated design
   for successive strengthening of codes and
                                                          principles and analytics regarding whole
                                                          buildings and measures.
   Optimized with other regulations, especially
   Federal efficiency standards, non-California

CODES AND STANDARDS                                                                              SECTION 7 – PAGE 68
   Encouraging of building industry players
   to design or manufacture new energy

 7.3 GOALS

 Goal                                                        Goal Results
 1. Continually strengthen and expand building and           California’s codes and standards will support this Plan’s
   appliance codes and standards as market experience        residential, commercial, and HVAC sector goals.
   reveals greater efficiency opportunities and compelling
   economic benefits.
 2. Dramatically improve code compliance and                 Energy savings from codes and standards will be fully
   enforcement.                                              realized.

 The Energy Commission re-visits and tightens                 Federal level—there is nonetheless a
 Title 24 building codes on a triennial basis.                tremendous opportunity for appliance regulation
 However, the scale of the goals and challenges               to increase energy savings.
 at hand—including that of putting all new
                                                              The Energy Commission is a key leader in this
 commercial buildings on a path to zero net
                                                              effort, along with the California Building
 energy by 2030, and meeting AB 32’s emission
                                                              Standards Commission. The Federal
 reduction targets—prompts an accelerated
                                                              government, utilities, research organizations
 strategy to make the codes more stringent and
                                                              (Energy Commission-PIER, national labs), trade
 cover more end uses and measures.
                                                              and professional licensing/registration agencies,
 The strategies described below pursue both                   the building/developer/contractor/ manufacturers
 sides of the codes and standards coin: they                  industry and realtors must work cooperatively to
 develop enhanced regulations “on paper;” and                 develop common goals and provide the
 they improve their real world effectiveness, cost-           technical support for this effort.
 effectiveness, and compliance. Although the
                                                              These strategies are intentionally presented at a
 strategies place greater emphasis on building
                                                              high level in this Chapter. The Residential,
 codes than on appliance/equipment standards—
                                                              Commercial and HVAC Chapters provide
 as the former are principally regulated at the
                                                              greater detail on codes and standards goals and
 State level and the latter principally at the
                                                              strategies applicable to those sectors.

 There is a de facto symbiotic relationship                   role in assisting this coordination, and must be
 between more stringent codes and standards                   committed to playing an even larger role in the
 and improvements in technology, products and                 future to support and/or facilitate future efforts.
 practices (the former prods the latter, while the            Such coordination has two major components:
 latter helps allow the former) that will need to             one, coordinating with other relevant
 strengthen and accelerate in the coming years.               governmental regulations; and two, coordinating
                                                              with relevant programs, incentives, market
 More than most other efficiency policy areas,
                                                              dynamics, research and other non-regulatory
 codes and standards demand coordination with
 other efforts and parties—from regulators to the
 regulated—to be optimal. Both the Energy                     Many other governmental entities can impact the
 Commission and the IOUs have played a major                  effectiveness of California’s codes and

CODES AND STANDARDS                                                                                             SECTION 7 – PAGE 69
 standards. For example, the Federal                             Coordination with other programs and laws is
 government (i.e., DOE) has primary                              also critical. Codes and standards by their
 responsibility for appliance/equipment                          nature are more focused on eliminating
 standards. Local governments play an                            inefficient products and practices than on
 important role, both in the enforcement of Title                developing or popularizing new highly efficient
 24 for building construction and renovation and                 ones. Accordingly, codes and standards should
 in the development of local “reach” codes that                  be coordinated with efficiency programs that
 can serve as pilots for statewide codes.                        develop and commercialize new products and
 California’s newly-adopted Green Building                       building design solutions.
 Standards along with San Francisco and Los
                                                                 While efforts to leverage efficiency investments
 Angeles’ recent Green Building Ordinances,
                                                                 at times of sale and/or major retrofit labeling or
 referenced earlier, represent recent “beyond
                                                                 other requirements provide important
 code” efforts. These important efforts serve to
                                                                 opportunities for efficiency gains, excessive
 continually “raise the bar” for California’s
                                                                 “trigger” requirements can serve as a
 statewide standards. Coordination among such
                                                                 disincentive to undertaking beneficial
 “reach” codes and the statewide efforts, as well
                                                                 investments. Interagency collaboration is
 as among non-governmental building rating and
                                                                 needed to identify solutions to such challenges
 certification systems frequently embraced by
                                                                 and develop and prioritize action paths towards
 local government development policies, remains
                                                                 California’s energy and GHG goals.
 critical, however.

                                   Goal 1: Code Enhancement and Expansion
                                       Implementation Plan and Timeline
                         Near-Term                  Mid-Term                Long-Term
     Strategies                                                                                    2021 Beyond
                        (2009-2011)                (2012-2015)              (2016-2020)
   1.1: Develop a   Adopt a progressive set of    Develop road map        Develop “reach”          Codes and Standards
   phased and       building codes; including    for accelerating Title   codes for buildings as   require net zero
   accelerated      one or two voluntary         20 standards and         “net producers” of       commercial buildings
   approach to      “reach” code tiers for       Title 24 codes in a      energy (ZNE).            by 2030.
   more stringent   residential and              “top-down” approach      Codes and Standards
   codes and        commercial sectors.          Increase use of          require net zero
   standards.       Lower the renovation         building                 residential buildings
                    threshold at which the       commissioning            by 2020.
                    code applies to an entire    requirements for new
                    existing structure           buildings and
                    Identify local code or       retrofits.
                    ordinance opportunities as   Identify analysis,
                    pilots or where local        case study, R&D, and
                    conditions may support       other activities
                    accelerated action.          necessary to support
                                                 strengthening of
                                                 codes and standards.

CODES AND STANDARDS                                                                                           SECTION 7 – PAGE 70
                                          Implementation Plan and Timeline
                            Near-Term                  Mid-Term                Long-Term
     Strategies                                                                                          2021 Beyond
                           (2009-2011)                (2012-2015)              (2016-2020)
   1.2: Expand        Expand Title 20 to cover       Expand Title 20 and     Investigate expansion       Continue to develop
   Titles 24 and 20   additional plug loads such    Title 24 to cover        of Titles 24 and 20 to      and refine
   to address all     as copy machines,             additional uses such     address all significant     approaches from
   significant        printers, battery chargers,   as server farms,         energy end uses             experience.
   energy end uses    televisions.                  process loads and        (manufacturing,
                      Enhance Title 24 to           water use.               agricultural,
                      include whole building         Develop building        healthcare, etc.).
                      approaches including          standards to better      Evaluate including
                      metering and data             integrate on-site        land development in
                      management; automated         clean distributed        energy standards and
                      diagnostic systems; and       generation.              regulations.
                      sub-metering for tenant-       Investigate
                      occupied space.               establishing energy
                      Pursue greater alignment      and green building
                      of national and localized     codes on a
                      green building codes with     community and/or city
                      energy codes.                 level that may include
                      Integrate AB 32 standards     infrastructure issues
                      with energy efficiency        such as
                      goals.                        transportation,
                                                    treatment, solid waste
   1-3: Improve       Conduct analysis that will    Continue research to     Continue research.          Continue research
   code research      help the code move            improve program          Conduct research on         based on promising
   and analysis.      toward a zero-based           impact and               revising and updating       next steps.
                      approach.                     processes.               the cost-
                      Analyze approaches for        Conduct analysis of      effectiveness,
                      whole buildings, non-         embedded energy          including the potential
                      covered end uses and          savings with             for using non-energy
                      measures that are not         transportation,          benefits as a
                      currently credited by Title   wastewater, and solid    component of cost
                      24.                           waste options for        effectiveness.
                      Conduct tests and             green building
                      evaluations of potential      standards.
                      code change measures.         Investigate the
                      Increase research and         balance between
                      analysis regarding how        mandatory,
                      behavior affects use of       prescriptive, and
                      buildings and code            beyond-code “reach”
                      compliance.                   standards to achieve
                      Evaluate and develop          more effective codes,
                      appropriate approaches to     greater compliance
                      include DR standards in       rates, and more
                      C&S.                          innovation in the
                      Continue exploration and
                      adoption of improved
                      building energy simulation
                      and compliance tools.
   1-4: Improve       Continue to develop           Coordinate               Pursue remaining            Pursue remaining
   coordination of    appliance standards to        development of           priorities as identified.   priorities as identified
   State energy       influence the market prior    related codes and
   codes and          to preemption by DOE.         standards such as
   standards with     Coordinate Title 24 goals     the California Green

CODES AND STANDARDS                                                                                                    SECTION 7 – PAGE 71
                                         Implementation Plan and Timeline
                           Near-Term                  Mid-Term                   Long-Term
     Strategies                                                                                          2021 Beyond
                          (2009-2011)                (2012-2015)                 (2016-2020)
   other state and   with 1992 Energy Policy       Building Standards,
   Federal           Act requirements for          ASHRAE 90.1 and
   regulations.      meeting/exceeding             189.1, ICC, CHPS,
                     Federal code.                 etc.
                     Coordinate development        Coordinate/support
                     and adoption of California    implementation of
                     Green Building Standards      legislation impacting
                     with Title 20/24 and          C&S program such
                     ASHRAE Standard 189,          as AB 32.
                     CHPS.                         Coordinate
                                                   development of
                                                   codes and standards
                                                   with State and
                                                   voluntary programs
                                                   such as Energy Star,
                                                   LEED, Flex Your
                                                   Power, etc.
   1-5: Improve      Develop and implement           Investigate ways to        Investigate a greater      Investigate the
   coordination of   plan for enhanced            integrate C&S with          convergence of the        integration of utility
   energy codes      coordination and             other DSM by offering       C&S and other DSM         infrastructure planning
   and standards     integration of codes and     tiered incentives           through non-code          with potential
   with utility      standards with full          (financial and other)       mechanisms and utility    community-based
   programs.         spectrum of EE market        and technical               program integration.      codes.
                     transformation, including    assistance for more
                     Emerging Technologies        comprehensive and
                     promotion, deployment,       inclusive definitions of
                     incentives, consumer         codes and standards.
                     education, etc.

 Goal 2: Improve code compliance and enforcement.

 Compliance with California’s efficiency codes                       the technical energy savings potential of energy
 and standards varies enormously, especially                         codes is lost due to non-compliance—but in
 with respect to building codes. For example,                        reality there is inadequate understanding of
 fewer than 10 percent of HVAC systems                               code compliance rates or the resulting
 installed have permits pulled and 30-50 percent                     degradation in performance.58
 of new central air conditioning systems are not
                                                                     This strategy will require a strong, coordinated
 being installed properly. This compliance failure
                                                                     effort among Federal, State and local entities,
 comes at considerable cost to Californians—the
                                                                     the utilities, California building officials (and their
 HVAC compliance shortcomings have led to an
                                                                     association, CALBO) and other code compliance
 estimated 20-30 percent increase in the peak
                                                                     organizations, trade and professional licensing/
 energy needed on hot summer afternoons.57 It
                                                                     registration agencies, and building/developer/
 has been estimated that at least 30 percent of
                                                                     contractor/ manufacturers associations.

CODES AND STANDARDS                                                                                                   SECTION 7 – PAGE 72
                                        Goal 2: Compliance and Enforcement
                                         Implementation Plan and Timeline
                            Near-Term                 Mid-Term               Long Term
      Strategies                                                                                     2021 Beyond
                           (2009-2011)               (2012-2015)             (2016-2020)
   2-1: Improve code   Conduct research to          Continue to conduct    Continue to conduct       Continue to conduct
   compliance and      determine high-priority      further research       research.                 research. Investigate
   enforcement.        tactical solutions for       relating to code       Investigate aggressive    and pursue solutions
                       code compliance and          compliance.            “stick” and “carrot”      to the perceived and
                       focus efforts                Refocus efforts as     programs with             real “penalties”
                       accordingly.                 needed.                monetary penalties        associated with non-
                       Increase training and        Pursue appropriate     and incentives.           compliance.
                       support for local building   involvement of         Investigate greatest      Investigate codes
                       code officials.              HERS raters.           opportunities of          and standards that
                       Investigate regulatory       Pursue trade           compliance                would regulate the
                       tools such as licensing/     associations to        improvement of            operation of buildings
                       registration                 improve “self-         appliances (Title 20)     that may include
                       enforcement.                 policing” of           in the upstream and       such things as
                       Evaluate proposed            membership.            midstream markets,        maintenance
                       changes to the code          Investigate tools,     including working         requirements, regular
                       and compliance               software programs,     directly with             updates to operating
                       approaches to simplify       “incentives”, and      manufacturers and         schedules,
                       and expedite                 policies to simplify   distributors to improve   mandatory
                       compliance.                  and streamline         appliance and             monitoring and
                                                    permit process.        equipment                 controls points,
                       Work with local
                                                                           compliance.               system reporting
                       governments to improve       Apply feasible
                                                                                                     requirements, etc.
                       code compliance, adopt       mechanisms to
                       above code ordinances,       prove code
                       and provide                  compliance as a
                       training/education.          pre-requisite for
                                                    partnership funding
                                                    or incentives from
                                                    the IOUs.

CODES AND STANDARDS                                                                                               SECTION 7 – PAGE 73
 8.1         VISION
 Energy efficiency, energy conservation, demand response, advanced metering, and distributed
 generation technologies are offered as elements of an integrated solution that supports energy
 and carbon reduction goals immediately, and eventually water and other resource conservation
 goals in the future.

 8.2     PROFILE
 Historically, demand side management (DSM)             offerings of integrated packages and maximize
 options for energy consumers have been highly          savings potential.
 segregated activities within regulatory bodies,
                                                        The goal of this Plan is to build on successes
 utilities, environmental organizations, and
                                                        from initial efforts such as PG&E’s Market
 among private sector service providers. The
                                                        Integrated DSM Initiative and the SCE and
 programs are focused on mass delivery and
                                                        Sempra Sustainable Communities Initiative to
 promotion of individual products, for example
                                                        offer integrated DSM solutions to maximize
 efficient air conditioners, rather than on
                                                        energy savings. A related goal is to design
 integrated packages of measures, for example,
                                                        policies and programs in research and
 air conditioner rebates with duct sealing,
                                                        development, commercialization, deployment,
 weather-stripping, programmable thermostats,
                                                        and codes and standards that reinforce each
 and advanced meters. This current narrow
                                                        other and use feedback loops to constantly
 focus on a single product offering does not
                                                        improve energy efficiency programs.
 maximize energy savings and nor minimize the
 costs of program delivery.                             Key participants in this effort include the utilities,
                                                        the Energy Commission, energy service
 A narrow, single-product approach also results
                                                        providers, contractors, research institutions, the
 in customer confusion by requiring the customer
                                                        business community, Federal agencies, and
 to seek out information on a wide array of
                                                        local governments.
 programs with multiple points of contact with
 providers in order to ascertain a basic                The development of Smart Grid technologies
 understanding of the DSM options available and         that enable active, real-time energy
 the benefits they offer. Customers in all sectors      management in homes and businesses will play
 do not have the time or expertise to seek this         a critical role in the packaging of integrated DSM
 information and many opportunities to work with        services. A recent report by IBM, Plugging in
 willing customers are lost.                            the Consumer, demonstrates that we are poised
                                                        at a critical moment for the uptake of advanced
 At the CPUC, a number of proceedings relate to
                                                        energy management systems. 60 Activities to
 DSM, including energy efficiency, demand
                                                        plan for Smart Grid integration underway in a
 response, advanced metering, combined heat
                                                        number of venues – including on-going R&D at
 and power/distributed generation, and the
                                                        the CEC61, and the upcoming Smart Grid OIR at
 California Solar Initiative (CSI), in addition to an
                                                        the CPUC – will lead to deployment of new grid
 upcoming Smart Grid OIR.59 The CPUC will
                                                        and metering technologies, which will optimize
 need to facilitate integration across the
                                                        energy system performance and encourage
 programs within its jurisdiction – including the
                                                        intelligent behavioral changes related to energy
 harmonization of cost-effectiveness
                                                        use across California.
 methodologies and metrics – in order to enable

DSM INTEGRATION AND COORDINATION                                                                    SECTION 8 – PAGE 74
 8.3 GOAL
                     Goal                                              Goal Results

 Significantly expand and improve programs to       Customers will realize increased energy savings at lower
 deliver integrated DSM options that include        cost through the implementation of a menu of DSM
 efficiency, demand response, energy                program options.
 management and self generation measures,
 through coordinated marketing and regulatory

 There are three levels of integration for DSM options:

     1. Comprehensive and Coordinated Marketing: This includes outreach and consumer education
        and presenting program options in a unified outreach fashion so that the messages are integrated
        and the number of contacts to consumers by utilities offering ratepayer-supported programs is
        coordinated, preferably through single points of contact.
     2. Program Delivery Coordination to Enable Systems Integration: This includes offering
        combined audits and recommendations across all relevant energy management opportunities,
        and combining energy efficiency, demand response, distributed generation, Permanent Load
        Shifting (PLS), solar rebates, and other applicable incentives into the same project.
     3. Technology and Systems Integration: This includes equipment that enables achievement of
        multiple DSM options (energy efficiency, demand response, etc.) and provides synergy across
        DSM program types (e.g., addressable electronic ballasts that both save energy and manage
        demand during utility peak hours).

 Integrated packages of DSM solutions are a consistent theme throughout each of the Chapters in this
 Plan. This Chapter describes augmented, not duplicate, strategies described elsewhere.

 8.4       STRATEGIES
 This Plan contains three overarching strategies for DSM integration:
                                                              party and local government platforms) and
   Pilot Programs: The best short-term path to
                                                              information access.
   promote integration is to continue current
   efforts by the IOUs and pursue an expanded                 Stakeholder Coordination: For the longer
   series of pilot projects as part of the IOUs’              term, the CPUC will work with key
   2009-2011 portfolios. These pilots will be                 stakeholders to develop and implement a
   designed to inform future program and policy               comprehensive, coordinated long-term
   submissions regarding the value and best                   approach to effective utilization of energy
   methods and targets of integration. The pilots             resources while also achieving GHG
   will offer a bundled product that includes                 emissions reductions, water conservation,
   elements of energy efficiency and                          waste disposal, and air quality requirements.
   conservation, consumer generation, demand
                                                              New Technology: Technology is a
   response, and the best available AMI
                                                              fundamental element to achieve the CPUC’s
   technology. In addition, the pilots will offer
                                                              Big Bold Energy Efficiency Strategies and to
   different forms of delivery (including third-
                                                              maximize the contribution of energy efficiency

DSM INTEGRATION AND COORDINATION                                                                          SECTION 8 – PAGE 75
   to meeting the State’s general energy and                                 achieving greater take-up of integrated DSM
   environmental goals. A major effort is needed                             programs. Deployment of “smart meter”
   to develop new technologies and systems that                              systems and associated dynamic pricing will
   enable multiple DSM options and provide                                   provide a new and improved tool for
   synergy across DSM program types. The                                     customers to monitor and reduce their energy
   CPUC has already approved installation of                                 consumption. The bulk of these systems will
   AMI throughout IOU service areas and will                                 be deployed statewide during 2009-2011,
   soon initiate a Smart Grid proceeding which                               which presents a unique near-term
   will likely spur development of new, integrated                           opportunity to promote integrated demand-
   DSM technology                                                            side management programs. Program
                                                                             administrators should streamline and integrate
                                                                             the marketing of DSM programs in
   Coordinated DSM marketing: Coordinated                                    conjunction with smart meter deployment.
   marketing will be an essential component in

 Historically, resource efficiency messages,                            programs, technology advancement and general
 programs, and initiatives have been promoted                           education and training objectives depends on
 as separate and largely independent activities.                        coordinated regulation across the spectrum of
 Energy, air quality, water, and waste regulations                      DSM activities. In addition, the implementation
 are under the jurisdictions of separate agencies                       of AB 32 with its corresponding focus on energy
 and commissions. Even with the CPUC, energy                            efficiency and conservation is a key action
 efficiency, distributed generation, solar, demand                      driver.
 response, and AMI policies and programs are
                                                                        Achieving this vision will require new forms of
 addressed through stand-alone proceedings. It
                                                                        government agency collaboration, mechanisms
 is critical to develop a shared vision and process
                                                                        to quantify and value multiple resource benefits,
 for regulatory coordination in California to
                                                                        and fundamental changes to the standard
 support the energy savings benefits of DSM
                                                                        business and service delivery practices of
 coordination/integration and to ensure consistent
                                                                        utilities, energy service companies and building
 and mutually supportive energy, water, air, and
 GHG policy and regulations. Enhancing utility

                            Goal: Integrated DSM Programs, Messages, and Technologies
                                        Implementation Plan and Timeline
              Strategies                       Near-Term                            Mid-Term              Long Term
                                              (2009-2011)                          (2012-2015)            (2016-2020)
     1.1: Carry out integrated       IOU integration plan, by sector             Continue integrated    Incorporate output of
     marketing of DSM                Streamline and integrate EE, DR,            marketing through      other integration
     opportunities across customer   and DG programs                             AMI full deployment    strategies and pilot
     classes.                        Coordinate integrated marketing             Leverage lessons       programs into
                                     with AMI deployment                         learned to other       marketing materials
                                     Combined audits of DSM                      general marketing
                                     opportunities                               materials

     1-2: Conduct Integrated DSM     Propose and launch pilots testing           Implement learning     Expand Statewide
     pilots in the Residential,      capabilities and effectiveness in the       from EE/DR pilots to
     Commercial, Industrial and      marketplace, including                      develop new pilots
     Agricultural sectors.           EE, DR, AMI and DG                          that include “smart
                                                                                 buildings” and
                                                                                 building operator
                                                                                 training and solar.

DSM INTEGRATION AND COORDINATION                                                                                       SECTION 8 – PAGE 76
                                       Implementation Plan and Timeline
              Strategies                      Near-Term                      Mid-Term             Long Term
                                             (2009-2011)                    (2012-2015)           (2016-2020)
     1.3: Develop integrated DSM    Establish on-going working group      Implement pilot       Expand programs.
     programs across resources,     to develop and implement blueprint    programs that
     including energy, water, and   for integration.                      integrate solutions
     transportation.                                                      across resources.
                                    Assess the current state of           Update biennially.    Update biennially.
     1.4: Promote development
                                    integration enabling technology and
     and support of new
                                    develop a guidance document
     technologies that enable or
                                    detailing a technology development
     facilitate DSM Coordination
                                    path related to integration. (2009)
     and Integration
                                    Prioritize integration enabling
                                    technologies in RD&D and ET
                                    programs based on the technology

DSM INTEGRATION AND COORDINATION                                                                               SECTION 8 – PAGE 77
 By 2020, California’s workforce is trained and
 engaged to provide the human capital necessary
 to achieve California’s economic energy efficiency
 and demand-side management potential.

 Workforce Education and Training (WE&T)                     implementation, and financial analysis. Meeting
 focuses on workforce issues—educating and                   the goals established in the Plan will require at
 training people to perform the jobs needed to               least two categories of staffing development:
 reach California’s clean energy goals. The IOUs             completely new types of jobs that do not exist
 currently provide energy efficiency specific                today (e.g., corporate emissions manager) and
 training courses to fulfill needs associated with           supplemental training for existing positions (e.g.,
 implementing IOU programs; efficiency specific              training engineers to enhance energy efficiency).
 course materials; training for third-party program
                                                             This cross-cutting sector is a truly statewide
 implementers; and energy efficiency and
                                                             coordination effort which must integrate energy
 sustainability programs at K-12 schools.
                                                             efficiency training into a wide range of public and
 In order to accommodate the dramatic increase               private programs. This effort will include the
 in energy efficiency programs envisioned by this            California Department of Education, the
 Plan and required by AB 32, California must                 Department of Employment Development,
 develop a trained workforce, including qualified            industry and labor associations, educational
 people trained in the various aspects of energy-            institutions at all levels, technical and vocational
 efficiency engineering, construction,                       training organizations, community based non-
 maintenance, program design and                             profits, and the business community.

 9.3 GOALS
 Goals                                            Goal Results
 1. Establish energy efficiency education and     Students develop careers that advance DSM businesses,
    training at all levels of California’s        policy, research and development, and education.
    educational systems.
 2. Ensure that minority, low income and          Individuals from the targeted communities take advantage of
   disadvantaged communities fully                programs that specialize in energy disciplines at all levels of
   participate in training and education          the educational system and successfully advanced
   programs at all levels of the DSM and the      themselves into rewarding careers in these disciplines.
   energy efficiency industry.

 9.4          STRATEGIES
 An effective, comprehensive WE&T program for a new energy efficient economy requires collaborative
 efforts by many entities. The IOUs are not in a position to effectuate the level of change needed to create

WORKFORCE EDUCATION AND TRAINING                                                                               SECTION 9 – PAGE 78
 a comprehensive WE&T program, nor can IOU ratepayers fully fund the effort. In addition to the
 educational institutions themselves, participants in defining and/or providing energy efficiency WE&T
 resources include:

   Government. California Department of                       Community-based and non-profit
   Education and the Department of Employment                 organizations. Organizations funded to
   Development, Federal government (e.g.,                     provide education, career development and
   Department of Labor), State government (e.g.,              workforce training programs (i.e., Greenlining
   licensing boards) and local governments (e.g.,             Institute, Apollo Alliance).
   building departments) to recruit train and
                                                              Industry and labor organizations. Trade
   prepare workforce candidates for technical
                                                              unions, the Sheet Metal and Air Conditioning
   and professional careers.
                                                              Contractors' National Association, the
   Educational Institutions. The University of                California Building Performance Contractors
   California, the California State University,               Association, home rating organizations, and
   community colleges, school districts and                   energy efficiency evaluation organizations.
   private colleges and universities.

 Several strategies will be completed in the near term to more thoroughly define, initiate and drive long-
 term WE&T development and strategic planning. These actions will also support creation of funding
 streams other than ratepayer funding; identification of market sector specific needs, and inform the short-
 term through long-term strategies for each market sector and education sector.
                                                              appropriate entities, and linked to the
   WE&T Needs Assessment. An in-depth
                                                              statewide energy efficiency web portal.
   formal statewide training and education
   resource inventory and needs assessment is                 Energy Efficiency WE&T Task Force. The
   necessary for long-range strategic planning                Task Force, comprised of energy efficiency
   and delivery. The needs assessment and                     program administrators, the CPUC, and
   resource inventory will be structured in such a            educational experts, will fulfill administrative
   way as to produce short-, near- and long-term              functions including: developing a needs
   strategies for implementation for each sector              assessment RFP; selecting the third party to
   defined in the Plan. Information in the WE&T               conduct the needs assessment; and
   Convener Report62 provides an excellent start              managing the needs assessment evaluation.
   for the assessment. The assessment will be                 The Task Force members will continue to help
   completed by a third-party with its process                implement the goals and strategies set forth in
   managed by the CPUC and IOUs, in                           this Plan.
   collaboration with the California Department of
                                                              Identify And Implement Specific Programs
                                                              For Each Educational Sector. WE&T needs
   WE&T Web Portal. The web portal will                       are best organized and approached by
   include links to various demand-side                       identifying the enabling or supporting
   management (DSM) related training programs                 educational sectors. Thus, five educational
   and will allow for a single point of                       sectors have been defined for addressing
   communication, serving as a repository for all             WE&T needs and opportunities: Kindergarten
   demand-side management and energy                          through high school, adult education and
   efficiency training, educational conferences,              community colleges, technical training,
   and career opportunities. This portal will be              colleges and universities, and minority, low
   created and funded in collaboration with other             income and disadvantaged communities.

 WE&T measures that are specific to particular industries or economic sectors are included in the
 appropriate Chapters of this Plan. For example, the HVAC Chapter addresses training for technicians
 and installers and building code officials. Similarly, the Commercial Chapter contains a strategy for
 expanded building operator certification training and integrated training for design of the zero net energy
 buildings. This Chapter focuses on cross-cutting measures.

WORKFORCE EDUCATION AND TRAINING                                                                    SECTION 9 – PAGE 79
 Goal 1. Establish energy efficiency education and training at all levels of the state’s educational

 This Plan envisions that the IOUs will act as a                     The most critical near term activity is a
 catalyst to change by implementing several                          comprehensive needs assessment to evaluate
 foundational activities that are necessary to                       energy efficiency workforce requirements
 accurately identify specific WE&T needs and                         through 2020 that are necessary to sustain a
 recommendations for action. These activities                        robust and effective industry to accomplish the
 will also enable the IOUs to review their existing                  goals set forth in this Plan. This needs
 programs and better align them within the                           assessment will solicit broad input from
 context of a comprehensive WE&T strategy.                           organizations identified above.

                                  Goal 1: Energy Efficiency Education and Training
                                     Implementation Plan and Timeline
     Key Actions                   Near Term                         Mid Term                     Long Term
                                  2009 – 2011                       2012 2015                     2016 2020
9-1: Define, initiate and   Conduct an in-depth formal        Update assessment as          Update assessment as
drive long-term WE&T        statewide training and            needed.                       needed.
development and strategic   education resource inventory      Maintain and update web       Maintain and update web
planning, including         and needs assessment.             portal.                       portal.
identification of funding   Assess current and                Maintain ongoing dialogue.    Maintain ongoing dialogue.
streams and market sector   alternative funding               Continue to oversee utility   Continue to oversee utility
specific needs.             mechanisms for WE&T               specific WE&T activities.     specific WE&T activities.
                            Create a WE&T specific web
                            portal and identify entities to
                            co-fund and co-sponsor the
                            web portal with utilities.
                            Initiate on-going dialogue with
                            broad group of market
                            participant and education
                            Establish task force to
                            oversee utility specific WE&T

WORKFORCE EDUCATION AND TRAINING                                                                                    SECTION 9 – PAGE 80
                                       Implementation Plan and Timeline
      Key Actions                    Near Term                        Mid Term                      Long Term
                                    2009 – 2011                      2012 2015                      2016 2020
9-2: Support the              Utilize community colleges to    Implement programs.            Implement programs.
community college and         provide technical training       Evaluate progress and refine   Evaluate progress and refine
adult education efforts to    such as HVAC maintenance         strategy.                      strategy.
allow students to develop     and building operator            Find opportunities to expand   Find opportunities to expand
their education based on      certification.                   programs and partnerships.     programs and partnerships.
their career paths            Develop appropriate linkages
                              with K-12 programs.
                              Coordinate with the
                              community colleges and adult
                              education sector to
                              incorporate an energy
                              component into their career
                              laddering concept.

9-3: Incorporate energy       Implement additional building    Implement programs.            Implement programs.
efficiency and demand         operator training curricula,     Evaluate progress and refine   Evaluate progress and refine
side energy management        training and professional        strategy.                      strategy.
into traditional contractor   career development               Find opportunities to expand   Find opportunities to expand
roles such as plumbers        programs.                        programs and partnerships.     programs and partnerships.
and electricians and
provide job training.
9-4: Create or expand         Utilize existing UC/CSU          Implement programs.            Implement programs.
programs with energy          extension programs to            Evaluate progress and refine   Evaluate progress and refine
focus and foster a green      incorporate a continuing         strategy.                      strategy.
campus focus for college      education curriculum             Find opportunities to expand   Find opportunities to expand
and university campuses.      component.                       programs and partnerships.     programs and partnerships.
                              Work with Universities and
                              colleges to expand
                              professional energy related
                              degree offerings and
                              contribute to tailored

9-5: Develop K-12             Identify opportunities to        Implement programs.            Implement programs.
curriculum to include         leverage governor’s career       Evaluate progress and refine   Evaluate progress and refine
energy efficiency             technical initiative.            strategy.                      strategy.
fundamentals and career       Identify opportunities to work   Find opportunities to expand   Find opportunities to expand
potential in energy-related   with the California              programs and partnerships.     programs and partnerships.
fields.                       Department of Education to
                              develop a program specific to
                              energy and GHG issues.
                              Support outreach into K-12
                              schools on energy, water and
                              environmental issues.

 Goal 2: Ensure that minority, low income and disadvantaged communities fully participate in
 training and education programs at all levels of the DSM and the energy efficiency industry.

WORKFORCE EDUCATION AND TRAINING                                                                                     SECTION 9 – PAGE 81
 Coordination of LIEE training with other energy                   training to be offered under this Act into the LIEE
 efficiency training programs is essential. This                   training. Recruiting for trainees may be
 includes coordination with The Green Jobs Act                     accomplished within the targeted communities
 of 2007 as well as with State level agencies                      currently being served by the LIEE contractors.
 such as the Employment Development                                The IOUs will also work with the EDD and the
 Department (EDD) and the Department of Social                     DSS to integrate the various training programs
 Services (DSS). The Green Jobs Act of 2007,                       that those agencies fund with the LIEE program
 approved as part of the recent Federal Energy                     so that those trained through these programs
 Bill, authorizes funding up to $125 million                       can join the workforce implementing California’s
 annually for job training in the energy efficiency                LIEE programs. Finally, as new legislation
 and renewable energy industries and facilitates                   passes and AB 32 begins implementation,
 economic development within minority, low-                        additional funding and programs from those
 income, and economically disadvantaged                            activities need to be leveraged to the advantage
 communities. The IOUs will work to include the                    of the energy efficiency ME&T effort.

                                           Goal 2: Disadvantaged Communities
                                              Implementation Timeline
        Strategies                    Near Term                     Mid Term                      Long Term
                                     2009 – 2011                   2012 2015                      2016 2020
 2-1: Collaboratively           Leverage Marketing           Implement programs.            Implement programs.
 identify appropriate goals     Education & Outreach and     Evaluate progress and refine   Evaluate progress and refine
 and strategies to build        task force to partner w/     strategy.                      strategy.
 California’s energy            community-based              Find opportunities to expand   Find opportunities to expand
 efficiency workforce           organizations and provide    programs and partnerships.     programs and partnerships
 through 2020, focusing on      targeted outreach.
 training that increase         Develop Low Income WE&T
 participation from within      Plan
 minority, low-income and       Train qualified diverse
 disadvantaged                  business enterprises from
 communities in achieving       minority, low-income and
 California’s economic          disadvantaged communities.
 energy efficiency potential.

WORKFORCE EDUCATION AND TRAINING                                                                                  SECTION 9 – PAGE 82
 10. 1 VISION
 Californians will be engaged as partners in the
 state’s energy efficiency, demand-side
 management and clean energy efforts by
 becoming fully informed of the importance of
 energy efficiency and their opportunities to act.

 10.2       PROFILE
 The purpose of Marketing, Education and                  Between 2006 and 2008, California IOU
 Outreach (ME&O) is to increase consumer                  ratepayers will have funded approximately $300
 participation in demand side management                  million for public education, marketing, and
 activities (including the California Solar Initiative,   outreach to support customer demand-side
 demand response, and advanced metering                   programs. Of this amount, $176 million funds
 efforts) and to encourage behavior changes that          public education and outreach for IOU energy
 save energy, reduce greenhouse gas emissions,            efficiency programs.63 The majority of these
 and support clean energy solutions. A highly             outreach efforts have focused primarily on
 successful ME&O program is a fundamental part            promoting isolated consumer actions, such as
 of many of the strategies and programs                   buying solar panels or compact fluorescent
 presented in this Plan as well as the ultimate           lightbulbs, or reducing usage to prevent outages
 goal of behavior and market transformation for           during peak periods. By and large, ME&O
 energy efficiency. ME&O must move                        messages have lacked the comprehensive focus
 consumers through a transitional process from            necessary to engage consumers in adopting
 awareness, to attitude change, to action.                energy efficiency as a way of life. While
                                                          program and service area differentiation of
 Californians are currently engaged in a broad
                                                          messaging will remain an important aspect of
 public discussion about energy use and its
                                                          overall ME&O efforts, the launch of a coherent
 relationship to global warming and the
                                                          statewide campaign will be instrumental in
 environment. California’s landmark legislation,
                                                          bringing consumer awareness of the value of
 the Global Warming Solutions Act of 2006
                                                          energy efficiency to the next level. Accordingly, it
 (AB32), set the stage for a statewide transition
                                                          is a top-level priority for the next round of
 to a clean energy future by requiring the
                                                          efficiency investment.
 reduction of greenhouse gas emissions to 1990
 levels by 2020. As a result, there is increased          The CPUC’s 2007 October Decision (D. 07-10-
 awareness of the value of energy efficiency and          032) directed that this approach be changed
 interest among consumers to do their part. This          significantly, under Commission direction and
 discussion presents a strategic window of                oversight, beginning in 2009 in order to better
 opportunity to use ratepayer-funded ME&O to              leverage ratepayer ME&O funding for more
 leverage public and private messages on global           effective results.
 warming to achieve greater impact on consumer
 awareness of, and demand for, energy

MARKETING, EDUCATION AND OUTREACH                                                                  SECTION 10 – PAGE 83
 10.3       GOALS
  Goal                                                    Goal Results

  Create and launch an integrated, statewide Marketing,   High levels of awareness statewide of the value of
  Education and Outreach effort for energy efficiency,    energy efficiency that leads to strong demand for
  including an energy efficiency brand.                   energy efficient products, homes and services.

 The ME&O effort will:

   Create instant brand recognition for energy                Create the demand pull that is a necessary
   efficiency in California, similar to the US                component of the goals set forth elsewhere in
   EPA’s EnergyStar label, and expanded to                    this Plan.
   reflect GHG benefits.
                                                              Motivate consumers to reduce energy
                                                              consumption on a daily basis.

 10.4        STRATEGIES
 The ME&O goal will be achieved through four strategies:

 1. An Energy Efficiency Brand: Creation of                3. Social Marketing: Use of social marketing
     an instantly recognized brand for “California              techniques to create emotional and
     Energy Efficiency” with clear delineation of               intellectual drivers for consumers to make a
     what the brand encompasses.                                commitment to change and participate in
                                                                energy efficiency.
 2. Integrated Marketing: Development of
     marketing messages that offer bundles of              4. Internet-Based Networking: Creation of a
     DSM programs targeted to specific customer                 web portal that allows energy efficiency
     groups and delivery of the messages using                  practitioners and consumers to exchange
     partnerships with a range of energy                        information and solutions on implementing
     efficiency participants, including local                   energy efficiency programs and measures.
     governments, retailers and manufacturers.

 The key to the next generation of ME&O is to create a consumer experience that offers an integrated set
 of DSM information and program options that are clear, relevant to the consumer, and accessible to all
 Californians. By beginning with a systematic approach to branding energy efficiency that is rooted in
 effective message research, evaluation, social marketing, behavioral science, and targeted segmentation,
 California will be laying a framework for successful integration of ME&O across all clean energy
 Under Commission direction and oversight, a statewide brand will establish a clear, consistent message
 about the individual and social value of energy efficiency, and set a foundation for consumers to receive
 targeted information on efficiency programs, products, and incentives. The development of this brand is of
 the highest priority for the State’s energy efficiency efforts. Segmentation research will be used to develop
 a wide range of messages designed to build on the brand and connect with specific groups of consumers,
 including low income and other hard to reach populations. Additional highly-targeted program marketing
 efforts that focus on specific consumer segments with the highest propensity to participate will also be
 executed to drive results. These efforts will be multi-channel and leverage strategic partners across the
 spectrum. All messages will be components of an integrated marketing strategy to provide consumers
 with an increased understanding of the full array of energy efficiency and DSM options.

MARKETING, EDUCATION AND OUTREACH                                                                         SECTION 10 – PAGE 84
                                                        information on products, programs, services,
                                                        practices and tools to manage their energy
                                                        usage. This consumer web platform will be
                                                        designed to facilitate peer-to-peer information
                                                        Peer-to-peer and word-of-mouth contact are
                                                        proven modes of information exchange that
                                                        increase motivation for action. The ME&O
                                                        effort will maximize these and other social
                                                        marketing techniques to motivate consumers
                                                        and achieve goals for change in behaviors,
                                                        attitudes and perceptions. The practice of
                                                        energy efficiency requires a sustained effort on
                                                        the part of the consumer, both in information
                                                        acquisition (i.e., what are the most effective
 California’s businesses and educational
                                                        methods and techniques)c and in ongoing
 institutions (public and private) are excellent
 channels to help leverage energy efficiency
 messaging and create the next generation of            Therefore, an approach based on increased
 energy ambassadors. The statewide ME&O                 access to information and behavior-based
 effort will work with both sectors to leverage their   marketing techniques will both educate and
 resources and utilize them fully in the statewide      inspire consumers to make a long-term change
 campaigns.                                             in how they think about and use energy.
 The Internet offers tremendous, cost-effective         For all of these strategies, clear objectives and
 opportunities as a clearinghouse for energy            metrics for the statewide campaign will be
 efficiency programs and promoting behavior             established prior to its launch, including an
 change. As directed in the CPUC’s October,             appropriate evaluation mechanism to measure
 2007 decision, the ME&O effort will include            results. The ME&O Task Force will continue to
 development of an interactive Energy Efficiency        function in an advisory capacity, leveraging
 Web Portal that provides one integrated point of       inputs and expertise from key stakeholders
 access to a multitude of energy efficiency             whose contributions collectively are vital to the
 information. The web portal will be a user-            successful implementation of the goals and
 centered, interactive resource that allows users       strategies envisioned in this Plan. The CPUC
 to easily navigate multiple points of data,            will guide the process for developing and
 applications, and information systems.64 The           implementing the ME&O effort and integrating
 portal will have two functions and development         strategic adjustments and improvements over
 stages and functions. The first stage will be a        time to ensure the achievement of goals and
 website for energy efficiency professionals such       benchmarks.
 as program designers, implementation
                                                        The result of these efforts will be a coordinated,
 practitioners, evaluators, marketers, and policy
                                                        comprehensive system of communicating with
 makers to share information and best practices
                                                        Californians and delivering an array of effective
 on implementing energy efficiency measures,
                                                        messages and valuable information resources.
 policies and programs.
                                                        This system will prove essential for engaging the
 The second stage will be development of an             public to help achieve California’s aggressive
 online resource for individual consumers (and          energy efficiency goals and global warming
 businesses) that provides easy access to               solutions.

MARKETING, EDUCATION AND OUTREACH                                                               SECTION 10 – PAGE 85
                                             Goal 1: Comprehensive ME&O Effort

                                      Implementation Plan and Timeline
                                   Near Term                      Mid-Term                       Long Term
                                  2009 – 2011                    2012 2015                       2016 2020
 1-1: Establish a         Launch integrated energy             Evaluate progress and   Evaluate progress and refine
 recognizable and         efficiency/DSM Brand.                refine strategy.        strategy.
 trustworthy brand for    Evaluate progress and refine
 California’s Energy      strategy.
 Efficiency and other
 DSM consumer
 products and
 1-2: Develop an          Conduct statewide segmentation       Evaluate progress and   Evaluate progress and refine
 integrated marketing     research, including LIEE and         refine segmentation     segmentation research.
 plan for all             other hard to reach groups, on       research.
 Californians.            interests, awareness, and
                          attitudes/perceptions related to
                          energy efficiency and global
                          warming messaging.
                          Develop targeted and highly
                          relevant energy efficiency and
                          DSM marketing messages to
                          incite behavior change/action.
                          Create partnerships with private
                          industry and businesses to help
                          motivate consumer action.
                          Define deliverables for each
 1-3: Use social          Develop a roadmap for a social       Implement social        Evaluate progress and refine
 marketing techniques     marketing approach including         marketing approach.     strategy
 to build awareness       exploration of behavioral science
 and change               principles.
 consumer attitudes
 and perceptions.
 1-4: Develop a           Develop initial website/portal for   Add consumer end use    Evaluate progress and refine
 California Energy        the energy efficiency/DSM            function to             strategy.
 Efficiency web portal    industry.                            website/portal.
 with statewide           Begin pilot programs in using
 Information on GHG       web portal.
 reductions, efficiency
 and DSM awareness
 and options.
 1-5: Public Education    Identify or develop curriculum for   Ongoing                 Ongoing
                          K-12 education, and work with
                          State Board of Education to
                          integrate into State

MARKETING, EDUCATION AND OUTREACH                                                                                     SECTION 10 – PAGE 86
  11. 1 VISION
  Technology advancement related to energy use and demand will match—or even eclipse— the
  consumer electronics industry in innovation, time to market, and consumer acceptance.

  11.2 PROFILE
  The development, enhancement, deployment,                     Finally, establishing a robust and vibrant
  and operation of more and better energy                       evaluation and user feedback loop is crucial to
  efficiency related technology is fundamental to               advancing technology development.
  achieving California’s energy efficiency vision
                                                                Technology advances along a continuum from
  and goals. While technology breakthroughs do
                                                                basic research to general use. The
  occur, the timing of California’s goals demands a
                                                                advancement process comprises several stages
  targeted focus on moving more technologies into
                                                                and is not strictly linear. It also includes several
  the marketplace. Since most demand-side
                                                                feedback loops, restarts and early terminations.
  technologies involve a human interface,
  increased knowledge of human behavior and
  social science is also necessary—as is the
  infusion of that knowledge into technology
  development, deployment, and integration.

                                     Technology Advancement Continuum

                    Lab                       Technical                        Program
                Development                    Support                         Support

         Basic Research                   Design             Test      Introduction   General Use


                      New Ideas                    Enhance                        Demands

  Historically, the focus of the CPUC and utility               development just prior to market readiness. In
  technology programs has been on supporting                    2000, the CPUC, utilities and the Energy
  energy efficiency technologies that are market                Commission started the Emerging Technologies
  ready but not commonly accepted                               Coordinating Council (ETCC) to coordinate
  (corresponding to the “Test” and “Introduction”               statewide market promotion of emerging
  phases displayed in the diagram above). The                   technology efforts. To achieve the next level of
  Energy Commission’s Public Interest Energy                    energy efficiency, the Plan is looking beyond
  Research (PIER) program funds technology                      that historical focus.

RESEARCH AND TECHNOLOGY                                                                                  SECTION 11 – PAGE 87
 Innovation in building design, materials, and           Institute, other State organizations like the New
 construction practice emanates from national            York Energy Research and Development
 laboratories, such as the National Renewable            Authority (NYSERDA), and large municipalities
 Energy Laboratory (NREL) and the Lawrence               like New York City. On an international level,
 Berkeley National Laboratory (LBNL).                    the leadership of the United Kingdom and other
 Additionally, at the national level, leading edge       countries is critical. Within California, agencies
 energy efficiency initiatives are now often led by      like the Sacramento Municipal Utility District
 entities like the America Society of Heating,           (SMUD) and progressive municipalities are also
 Refrigerating, and Air-conditioning Engineers           often on the leading edge. California will benefit
 (ASHRAE), the American Institute of Architects          greatly by better integration and leverage with
 (AIA), Architecture 2030, the New Buildings             these activities.

 11.3 GOALS
 New technologies that use minimum energy as             catalyze research, development and
 well as new energy efficiency enabling                  commercialization of technologies that support
 technologies (e.g., nanotechnology, wireless            the Big, Bold Energy Efficiency Strategies and
 sensors, DC Power Architecture) are                     integrated energy solutions initiatives. As noted
 fundamental to a transformed energy market.             above, research and technology strategies must
 However, neither utility programs (including the        include the entire technology advancement
 ETCC) nor PIER create technology or drive               continuum as well as the operational and
 technology advancement; rather they support             behavioral factors that influence technology
 the commercialization process and create an             usage. This will require greater attention to and
 element of market pull.                                 prioritization of DOE and privately-funded R&D
                                                         activities, and more explicit commercialization
 Utility and Energy Commission energy efficiency
                                                         and utilization strategies.
 technology programs must be refocused to

 Goal                                                    Goal Results
 1. Refocus utility and Energy Commission energy         Ratepayer-funded R&D programs will explicitly support
   efficiency activities to create demand pull and set   the ZNE, whole-building and integrated energy
   the research agenda for both incremental and          solutions envisioned in this Plan and will be used to
   game-changing energy efficiency technology            leverage other private and public funds for the
   innovations.                                          deployment of new technologies.

 2. Conduct targeted emerging technologies R&D to        Profound improvement in equipment efficiency as well
   support the Big, Bold Energy Efficiency Strategies    as new building materials and designs aimed at
   and integrated energy solutions goals.                achieving more efficiency from existing buildings than
                                                         technically feasible today.


 California’s energy efficiency goals require substantial changes in all stages of the technology
 advancement cycle including technology, marketing, and operations. Strategies must harness private
 market forces – as well as regulatory-directed efforts - to foster the development and deployment of
 technologies and methods that promote and support a comprehensive adoption of energy efficiency
 practices. Key research and technology strategies are:

RESEARCH AND TECHNOLOGY                                                                                SECTION 11 – PAGE 88
                                                        Employ a systems approach to establishing
   Engage the full-range of participants – private
                                                        research priorities.
   entities, national labs, clean energy and
   environmental groups, green venture capital          Facilitate paths-to-market for technologies
   firms, Federal, State and local governments,         and enabling/supporting practices through
   utilities and consumers.                             targeted product distribution methods,
                                                        directed research and technology investment,
   Identify new technologies and enhance
                                                        and market push/pull techniques.
   existing technologies to make them better and
   improve their uptake and use.                        Apply social and behavioral science theory to
                                                        encourage the adoption and best use of
                                                        resources and energy efficient technology.


 Goal 1: Create demand pull and set the research agenda for both incremental and game-
 changing energy efficiency technology innovations.

 To stimulate transformations in technology and       critical role in early-stage R&D activities for
 related market dynamics, ratepayer-funded            emerging technologies.
 emerging technologies monies must be focused
                                                      Academic research (both public and private) is a
 on creating the demand pull for emerging
                                                      third major technology development and
 technologies that support the goals of this Plan.
                                                      advancement force, while the efforts of other
 Key to this effort is a focused effort to leverage
                                                      State or regional entities that utilize energy
 the R&D resources of both the public and private
                                                      efficiency as a means to achieve their goals
                                                      (e.g., CARB, South Coast Air Quality
 Private industry’s enormous investment in            Management District) provide additional
 technology development and its ability to            resources.
 respond quickly to changing economic priorities
                                                      Better coordination among these activities will
 and to capture opportunities is needed to realize
                                                      ensure both incremental and game-changing
 the goals of the Plan.
                                                      energy efficiency technologies, while at the
 Federal R&D funding, particularly its role in        same time creating sustained demand pull for
 supporting for national laboratories, also plays a   the technologies that emerge.

RESEARCH AND TECHNOLOGY                                                                         SECTION 11 – PAGE 89
                                      Goal 1: Create Demand Pull for New Technologies
                                           Implementation Plan and Timeline
            Strategies                          Near-Term                           Mid-Term                        Long Term
 1-1: Enhance market intelligence       Develop road map to identify          Integrate research and           Integrate research and
 and behavioral research activities     and prioritize consumer needs,        2009-2011 M&V studies for        2012-2014 M&V studies for
 related to energy efficient            behavioral drivers and decision       continuous improvement.          continuous improvement.
 technologies.                          processes.                            Ongoing research on              Ongoing research on
                                        Develop and launch research           customer choices,                customer choices,
                                        agenda                                acceptance, experiences          acceptance, experiences
                                        Integrate customer influences         with new technologies.           with new technologies.
                                        in emerging technologies              Where secondary research         Where secondary research
                                        project screening.                    is lacking, perform primary      is lacking, perform primary
                                        Assess technology specific            market research on               market research on
                                        market potential using                specific applications and        specific applications and
                                        secondary market research to          technologies.                    technologies.
                                        obtain technical and economic
                                        potential on new and emerging
                                        technologies and market

 1-2: Expand activities to create       Plan and launch knowledge          Continuous improvement of        Continuous improvement of
 market pull for energy-efficient       management systems.                knowledge system, including      knowledge system, including
 technologies                           Explore customer/manufacturer      lessons learned. Increase        lessons learned.
                                        targeted strategies for creating   scope of reference material      Increase scope of reference
                                        pull.                              where needed.                    material where needed.

RESEARCH AND TECHNOLOGY                                                                                                       SECTION 11 – PAGE 90
                                      Implementation Plan and Timeline
           Strategies                      Near-Term                         Mid-Term                    Long Term
 1-3: Leverage private industry    Create an investor-ET network       Improve and evolve           Continuous improvement,
 and Federally funded technology   to share market information,        enabling mechanisms.         including lessons learned.
 research and investment           technology assessment results,      Continuous improvement,      Create mechanisms for
                                   and expedited access to             including lessons learned.   enabling technology
                                   incentive programs.                 Create mechanisms for        development and support
                                   Refine ET and PIER process to       enabling technology          to technology incubators,
                                   encourage more rapid                development and support      inventors at the
                                   evaluation of emerging              to technology incubators,    development stage.
                                   technologies.                       inventors at the             Ongoing
                                   Pilot incubator program to fast-    development stage.
                                   track ET deployment.                Deploy statewide EE-
                                   Expand upstream relationships       based technology
                                   and channels to effectively         incubation process.
                                   target and generate support for
                                   energy-related technology.
                                   Expand Federal government
                                   R&D support for California’s

 Goal 2: Conduct targeted emerging technologies R&D to support the Big, Bold Energy Efficiency
 Strategies/Programmatic Initiatives and integrated energy solutions goals.

 Goal 1 calls for reshaping the overall focus and                     element of the technologies in the second prong
 direction of ratepayer-funded energy efficiency                      should be integrated building systems and
 R&D programs. In the near term, however, it is                       controls and design practices that take a holistic
 critical that work continues on specific areas to                    view of building design, delivery and operations.
 support the Big, Bold Energy Efficiency
                                                                      A focus of Goal 2 would be pilot programs that
 Strategies/Programmatic Initiatives and whole-
                                                                      would seek to mature technologies, particularly
 building goals in this Plan.
                                                                      for whole building or integrated approaches.
 The first prong of this work is to collaborate with                  One example of this type of pilot is a USDOE-
 technology providers and the R&D community to                        led effort at UC Merced, being executed by a
 promote cost-effective performance                                   team composed of LBNL, United Technologies
 enhancements of existing technologies for                            Research Center, UC Berkeley, and UC Merced,
 increased consumer demand and market                                 directed at the identification and maturation of
 penetration. This work will include targeting                        key technologies for integrated building
 plug-loads (e.g., HDTV) as one of the major                          operation. This effort aims to reduce energy
 growth areas in demand. In addition, targeted                        demand by nearly 30 percent using systems
 R&D in the area of both commercial and                               technologies for real-time energy performance
 residential lighting is essential.                                   diagnostics and model predictive and occupancy
                                                                      demand-based building controls.
 The second prong is a strategic focus on
 leading-edge technologies, products, and
 practices including existing buildings. A key

RESEARCH AND TECHNOLOGY                                                                                            SECTION 11 – PAGE 91
                                                          Goal 2: Targeted R&D
                                               Implementation Plan and Timeline
            Strategies                               Near-Term                         Mid-Term                      Long Term
 2-1: Develop general R&D              Provide input to ensure alignment of        Continue involvement         Continue involvement and
 community support for support         activities with big, bold focus areas.      and collaboration with       collaboration with R&D
 Big Bold Initiatives                  Collaborate with regional and national      R&D community,               community, including
                                       labs, manufacturers, universities to        including input to           input to ensure alignment.
                                       develop and enhance technologies that       ensure alignment.
                                       can help meet the statewide strategic
                                       EE/DR goals.

 2-2: Promote cost-effective              Target plug-load and lighting            Extend to other plug         Continue previous efforts
 performance enhancements of              initiatives as well as other big, bold   loads.                       with higher levels of
 existing technologies                    focus areas, such as real-time           Target additional big,       attention to net-zero
                                          energy performance monitoring and        bold focus areas             residential goals.
                                          automated building commissioning         Continuous                   Continuous improvement,
                                          technologies.                            improvement, including       including lessons learned.
                                          Collaborate with manufacturers to        lessons learned.             Continue collaborations
                                          improve performance of existing          Continue                     with manufacturers to
                                          technologies.                            collaborations with          bring more efficient
                                          Develop specifications to drive /        manufacturers to bring       technologies into the
                                          guide improvement activities.            more efficient               market.
                                          Provide technology feedback              technologies into the
                                          through ET assessments.                  market.
                                          Explore longer term strategies to
                                          increase saturation of new big and
                                          bold measures and technologies.
 2-3: Develop initiatives aimed at        Initiate upstream technology             Continue to drive            Continue to drive efforts
 ET to support Big Bold Initiatives.      program activities, including whole      efforts aimed at non-        aimed at non-mainstream
                                          building integrated solutions.           mainstream                   technologies.
                                          Embark on plan to demonstrate big        technologies. Improve
                                          bold measures in customer sites and      and evolve upstream
                                          seed the market.                         programs.
                                          Conduct “pilot” programs of new          Continue to collaborate
                                          technology seeding and market            with manufacturers in
                                          uptake through subsidies and             new ambitious pilot
                                          incentives.                              programs.
                                          Collaborate with manufacturers in
                                          new ambitious pilot programs,
                                          including full-scale demonstration
                                          programs to mature innovative
                                          system technologies.
 2-4: Develop initiatives aimed at        Provide input to ensure alignment of     Continue collaboration    Continue collaboration with
 PIER to support Big Bold                 activities with Big, Bold Initiatives.   with PIER, including      PIER, including input to
 Initiatives.                             Form Utility advisory group to           input to ensure           ensure alignment.
                                          formally provide input into PIER         alignment.
                                          research strategies and programs.
                                          Collaborate with PIER to develop a
                                          formal process to roll PIER
                                          developed technologies into ET.

RESEARCH AND TECHNOLOGY                                                                                                       SECTION 11 – PAGE 92
 12.1 VISION
 By 2020, California’s local governments will be leaders
 in using energy efficiency to reduce energy use and
 global warming emissions both in their own facilities
 and throughout their communities.

 California’s 600-plus local governments are             and today are at different levels of commitment
 remarkably diverse—they range from the largest          and capacity. Many of them, however, are
 county in the U.S. to small towns; from busy            paying significant attention to energy efficiency
 agricultural centers to residential suburbs to          and climate change and are interested in doing
 world-renowned cities.65 This diversity includes        what they can, as quickly as they can, and in
 energy efficiency: California’s local governments       collaboration with their residents, other local
 and their communities face different                    governments, State government, utilities and
 circumstances and have different constituencies,        other key participants.

 Local governments share a broad array of energy-related authorities and opportunities:

 Regulatory Authority. Local governments have            Local Government Energy-Using Facilities.
 significant authorities that can improve the            Local governments can be significant energy
 energy efficiency of new and existing buildings.        end users in their own buildings and facilities,
 These include:                                          from public schools to wastewater treatment
                                                         plants to City Hall. These facilities provide an
   Ensuring compliance and enforcement of the
                                                         opportunity to “lead by example” by improving
   Title 24 energy code for residential and
   commercial buildings.                                 energy efficiency, reducing CO2 emissions, and
                                                         cutting government energy bills. They can also
   Adopting building codes beyond Title 24’s             use these facilities to showcase the products
   energy requirements (and potentially other            and practices that will become commonplace in
   “green” requirements).                                a “zero net energy” world.
   Supporting highly efficient projects that             Energy Leadership in Local Communities.
   voluntarily exceed minimum energy codes               Local governments often can play an important
   through favorable fee structures, fast-tracked        role in influencing the energy attitudes and
   permitting and other innovative and locally           actions of their citizens and businesses. This
   appropriate approaches.
                                                         can take on many forms, from public education
   Enacting ordinances with point-of-sale or             to adopting innovative policies and initiatives to
   other approaches that spur efficiency actions         integrating actions addressing energy efficiency,
   in privately owned buildings.                         climate change and sustainability. Communities
   Applying efficiency-related “carrots” and             with municipally owned utilities have an
   “sticks” using local zoning and development           additional opportunity in this regard.

LOCAL GOVERNMENTS                                                                                SECTION 12 – PAGE 93
 The CPUC has recognized the unique role of local governments in fostering innovation. Almost ten years
 ago, the CPUC directed utilities to consider programs that take advantage of the unique expertise,
 relationships with customers, and ability to coordinate among related activities offered by individual or
 groups of local government.66

 12.3        GOALS
    Goals                                   Goal Results
    1. Local governments are leaders in     At least 5 percent of California’s local governments (representing at least 5
       adopting and implementing            percent of CA total population) each year adopt “reach” codes.
       “reach” codes stronger than Title    By 2020, the majority of local governments have adopted incentives or
       24, on both a mandatory basis and    mandates to achieve above-code levels of energy efficiency (or DSM) in their
       voluntary basis.                     communities.
    2. Strong support from local            The current rate of non-compliance with codes and standards is halved by
      governments for energy code           2012, halved again by 2016, and there is full compliance by 2020.
      compliance enforcement.
    3. Local government lead by             The energy usage footprint of local government buildings is 20% below 2003
       example with their own facilities    levels by 2015 and 20 percent below 1990 levels by 2020.
       and energy usage practices.
    4. Local governments lead their         By 2015, 50 percent of local governments have adopted energy
       communities with innovative          efficiency/sustainability/climate change action plans for their communities and
       programs for energy efficiency,      100 percent by 2020, with implementation and tracking of achievements.
       sustainability and climate change.
    5. Local government energy              By 2020, 100 percent of local governments have in-house capabilities devoted
       efficiency expertise becomes         to achieving all cost-effective energy efficiency in their facilities and
       widespread and typical.              communities.

 The three key strategies for local government action are:
                                                                   five important statewide associations of local
 1. Tap Local Government Authority: Use                            governments that are key to these
     local government authority over planning                      strategies: the California State Association
     and development policy to maximize energy                     of Counties (CSADF), League of California
     efficiency in privately owned new                             Cities (League), Local Governments for
     construction and existing buildings.                          Sustainability (ICLEI), the Institute for Local
 2. Leading by Example: Showcase with local                        Government (Institute), and the Local
     governments’ facilities achieving economic                    Government Commission (LGC). A task
     energy efficiency, reducing CO2 emissions,                    force should be formed consisting of leaders
     and showcasing promising energy                               from each of these organizations, the
     efficiency, DSM and renewables products                       CPUC, the Energy Commission, and Utilities
     and practices.                                                to develop and implement the strategies
                                                                   listed for Local Government listed in this
 3. Community Leadership: Local                                    Plan.
     governments should lead their communities
     to support clean energy goals. There are

LOCAL GOVERNMENTS                                                                                             SECTION 12 – PAGE 94
 Goal 1: Local governments are leaders in adopting and implementing “reach” codes.

 Local governments can adopt more stringent building standards than Title 24, subject to Energy
 Commission approval. As mentioned in the residential ZNE discussion above, over the past year both the
 City of San Francisco and the City of Los Angeles have adopted Green Building Ordinances for new
 buildings in the respective cities. However, in the broader scope of the state, relatively few local
 governments have adopted local ordinances that exceed the 2005 Title 24 requirements. Much more can
 and should be done at the local level.
 In addition, local governments can adopt point of sale requirements. For example, the City of Berkeley
 has had residential and commercial building ordinances that are triggered at the time of sale or significant
 renovations for over a decade. Several foundational activities will assist local governments in this effort:

   Development of model mandatory local                      Focused and sustained outreach support for
   government codes, ordinances and programs                 local governments to educate them about the
   that local governments can modify as needed,              model standards and ordinances and provide
   adopt, and implement. These would include                 assistance in developing, adopting, and
   tiers of codes beyond Title 24 (see the                   implementing “reach” standards.
   Residential and Commercial Chapters.)
                                                             Network tools to allow local governments to
   Development of sample local ordinances for                share information and experiences on
   point-of-sale and other point-of-transaction              adopting and implementing “reach” standards
   energy efficiency requirements and building               and programs on a peer-to-peer basis
   energy ratings that must be disclosed at these
                                                             Policies that support utility efforts to assist
   points. (This strategy may require additional
                                                             local government development and
   legal authorizations.)
                                                             implementation of “reach” standards.
   Development of sample local government
                                                             Leadership recognition programs to support
   programs to reward projects that voluntarily
                                                             elected officials and local governments that
   exceed State and local minimum energy
                                                             adopt and implement “reach” standards and
   codes by expedited permitting, entitlement
   approval processes, favorable fee structures,
   and other favorable actions for qualifying                Linkage of emission reductions from “reach”
   green buildings and developments.                         standards and programs to CARB’s AB 32
                                                             implementation program.

LOCAL GOVERNMENTS                                                                                    SECTION 12 – PAGE 95
                                                     Goal 1: “Reach” Codes
                                          Implementation Plan and Timeline
          Strategies                       Near Term                       Mid Term                       Long Term
                                          2009 – 2011                     2012 2015                       2016 2020
 1-1: Develop, adopt and            Develop model codes and          Expand percent of cities       Expand to statewide
 implement model building           tiers; launch statewide          adopting codes; monitor        program.
 energy codes (and/or other         campaign for adoption            effectiveness and upgrade
 green codes) more stringent                                         model codes.
 than Title 24’s requirements,
 on both a mandatory and
 voluntary basis; adopt one or
 two additional tiers of
 increasing stringency.
 1-2: Establish expedited           Develop sample programs;         Ongoing improvement and        Ongoing improvement and
 permitting and entitlement         enact needed laws;               refinement.                    refinement.
 approval processes, fee            Processes, fee structures,
 structures and other incentives    and other incentives in place
 for green buildings and other      statewide by 12/2011.
 above-code developments.

 1-3: Develop, adopt and            Develop model codes and          Implement statewide building   Implement disclosure, ratings
 implement model point-of-sale      programs in 2009; launch         energy ratings system by       and/or energy upgrades at
 and other point-of transactions    pilot programs in 2010           6/2012.                        sale of properties by 1/2013.
 relying on building ratings.

 1-4: Create assessment             Develop funding sources.         Ongoing implementation.        Ongoing
 districts or other mechanisms      Establish loan funding
 so property owners can fund        mechanism.
 EE through city bonds and pay
 off on property taxes; develop
 other EE financing tools.
 1-5: Develop broad education       Fund statewide liaison to        Ongoing                        Ongoing
 program and peer-to-peer           local gov’t associations;
 support to local govt’s to adopt   develop public education
 and implement model “reach”        campaign; establish
 codes                              leadership recognition
 1-6:Link emission reductions       CARB adopts regulation           Ongoing                        Ongoing
 from “reach” codes and             providing local gov’t emission
 programs to CARB’s AB 32           reduction credit for “reach”
 program                            standards

 Goal 2: Strong support from local governments for energy code compliance enforcement.

 Under State law, local governments, through                           technical energy savings from California’s
 their building permit and inspection processes,                       statewide energy codes may be lost due to non-
 are responsible for enforcement of Titles 20 and                      compliance. A 2007 study estimated
 24, the State’s appliance and building codes                          noncompliance rates with the Energy
 promoting energy efficiency. While there is                           Commission statewide building measures
 inadequate understanding of code compliance                           ranging from 28 to 100% and with appliances
 rates and the resulting degradation in                                standards from 0% to 63%.67 Resources (e.g.,
 performance, more than 30 percent of the                              funds to send an inspector to training) are

LOCAL GOVERNMENTS                                                                                                     SECTION 12 – PAGE 96
 typically a barrier. Inspections and enforcement                    strongly supports local government compliance
 are paid for through local permit fees. Local                       programs is key to obtaining full savings from
 governments are often reluctant to raise fees to                    California’s aggressive building and appliance
 levels above neighboring jurisdictions.                             standards.
 A comprehensive, adequately funded statewide
 program for State building code compliance that

                                                   Goal 2: Code Compliance
                                         Implementation Plan and Timeline
           Strategies                       Near Term                     Mid Term                   Long Term
                                           2009 – 2011                   2012 2015                   2016 2020
  2-1:Statewside assessment of      Develop and conduct              Ongoing                     Ongoing
  local government code             assessment; develop set of
  enforcement and                   recommended improvements
  recommendations for change
  2-2: Dramatically improve         Develop strategies; test pilot   Expand statewide            Ongoing
  compliance with and               programs in 2010; Initial
  enforcement of Title 24           improvements in place
  building code, and of HVAC        statewide by 12/2010.
  permitting and inspection
  requirements (including focus
  on peak load reductions in
  inland areas).
  2-3: Local inspectors and         Update and/or incorporate        Ongoing                     Ongoing
  contractors hired by local        energy components in licensing
  governments shall meet the        requirements.
  requirements of the energy        Adopt requirements
  component of their
  professional licensing (as such
  energy components are

 Goal 3: Local governments lead by example with their own facilities and energy usage practices.

 Cities and counties can lead by example and
                                                                       Require LEED Certified and LEED Silver (or
 embrace energy efficiency in their facilities.
                                                                       their equivalents) for all new local government
 There are many examples already of local                              facilities.
 governments undertaking major actions to
 reduce energy usage in their own facilities.                          Require LEED Existing Building Silver for
 Examples of specific goals that local                                 existing local government facilities, by a
 governments can set for their buildings include:                      specified date.

   Require all local government owned and                              Achieve all cost-effective or economic energy
   leased buildings to be benchmarked, sub-                            efficiency in their facilities, by a specified date.
   metered, commissioned by 2012, and                                  Require commissioning for new buildings, and
   upgraded to the next level of energy efficiency                     re-commissioning and retro-commissioning of
   by 2015.                                                            existing buildings.

LOCAL GOVERNMENTS                                                                                              SECTION 12 – PAGE 97
 A sustained, comprehensive effort to extend these efforts statewide should be undertaken. In order to
 accomplish this goal, providing local governments with additional staff and technical resources is needed.

                                                   Goal 3: Lead by Example
                                          Implementation Plan and Timeline
            Strategies                       Near Term                      Mid Term                  Long Term
                                            2009 – 2011                    2012 2015                  2016 2020
     3-1: Adopt specific goals      Showcase innovative EE, other       Complete benchmarking     Implement statewide.
     for efficiency of local        DSM relevant to achieving ZNE       and LEED policy
     government buildings,          buildings.                          implementation.
     including:                     Implement local policies for        Launch statewide
                                    LEED new construction and           program.
                                    existing buildings.
                                    Develop and install showcase

    3-2: Require commissioning      Test programs.                      Ongoing refinement and    Ongoing
    for new buildings, and re-      Mandatory requirements in place     improvement.
    commissioning and retro-        statewide by 12/2011.
    commissioning of existing
    3-3: Improve access to          Identify various financing tools    Ongoing implementation.   Ongoing
    financing to support local      available to local governments.
    government energy               Modify as appropriate.
    efficiency//DSM, such as
    lowering interest rate of
    Energy Commission’s loan
    fund, and utility on-bill
    3-4: Explore creation of line   Exploration complete by             Ongoing implementation.   Ongoing
    item in local government        12/2009.
    budgets or other options        Implementation plan in place by
    that allow energy efficiency    6/2010 if warranted.
    cost savings to be returned
    to the department and/or
    projects that provided the
    savings to fund additional
    3-5: Develop innovation         Develop and begin first projects    Ongoing refinement and    Ongoing
    Incubator that competitively    by 12/2009.                         expansion.
    selects initiatives for
    inclusion in local
    government pilot projects.

 Goal 4: Local governments lead their communities with innovative programs for energy
 efficiency, sustainability, and climate change.

 Local governments are in a unique position to                         residents is unique and needs to be engaged far
 implement innovative, long-term, cross-cutting                        beyond current efforts, to support California’s
 programs promoting energy efficiency,                                 aggressive energy efficiency and global warming
 sustainability, and reduced carbon emissions.                         goals.
 Their ability to interact with businesses and

LOCAL GOVERNMENTS                                                                                                SECTION 12 – PAGE 98
 There are various resources available to aid                      agencies to address energy efficiency in
 local governments. Non-profit associations, for-                  development contracts, and; negotiating energy
 profits, State agencies, utilities and others can                 efficiency into developer agreements on major
 give technical assistance; offer targeted online                  projects. In addition, AB 811 (Levine, 2008)
 and written tools; and share an over-arching                      authorizes cities to provide low-interest loans to
 vision and best practices in conferences and                      property owners with long-term repayments
 workshops. One example of an innovative local                     added to their annual property tax bills to help
 government initiative is the effort being carried                 finance energy efficiency improvements and
 out in Cambridge, MA, under the Cambridge                         distributed generation installations.69
 Energy Alliance, a city-sponsored non-profit
 group established to identify and arrange
 financing for unprecedented gas, electricity and                  The success of this goal will require not only
 water savings by retrofitting buildings and                       resources from the State, utilities, non-profits
 installing renewable technologies in all end-use                  and the business community but the
 sectors.68 Another effort is California                           commitment of local governments and their
 Sustainable Communities Initiative sponsored by                   leaders to use their leadership and legal
 the Department of Conservation (DOC) which                        authority in new and often challenging ways. A
 seeks to expand the DOC’s recycling experience                    necessary step is to support organizations
 with local governments into a more                                serving local governments at the state level
 comprehensive statewide initiative that promotes                  (e.g., League of California Cities; County
 innovative and coordinated programs for energy                    Supervisors Association of California; Institute
 efficiency, sustainability, and climate change at                 for Local Government), regional levels (e.g.,
 the local level, using public-private partnerships.               Association of Bay Area Governments,
                                                                   Association of Monterrey Bay Area
 Additionally, local governments can and do
                                                                   Governments, San Diego Association of
 commit themselves and/or their communities to
                                                                   Governments, Southern California Association
 externally developed relevant commitments,
                                                                   of Governments), and non-profits so they can
 such as the United Nation’s Urban
                                                                   leverage their activities with local governments
 Environmental Accord or the ICLEI (Local
                                                                   on energy and environmental issues. This
 Governments for Sustainability) Cities for
                                                                   includes: creating a statewide liaison position
 Climate Protection campaign.
                                                                   focused on energy efficiency programs;
 Local governments also have a number of                           enhanced and expanded technical assistance;
 regulatory carrots and sticks including:                          targeted online tools; information on best
 community design requirements; land use and                       practices; and conference and workshop
 zoning policies that promote energy efficiency                    activities.
 and smart growth; requiring redevelopment

                                             Goal 4: Community Leadership
                                        Implementation Plan and Timeline
          Strategies                     Near Term                       Mid Term                     Long Term
                                        2009 – 2011                     2012 2015                     2016 2020
   4-1: Local governments        Assist local governments in       Ongoing implementation.        Ongoing implementation.
   commit to clean               commitments; develop and
   energy/climate change         communicate appropriate
   leadership.                   messages.
   4-2: Use local governments’   Develop model General Plan        Expand inclusion in general    Ongoing implementation.
   general plan energy and       amendments.                       plans. By 2015, inclusion in
   other elements to promote     Leadership local governments      all local gov’t plans.
   energy efficiency,            adopting elements.
   sustainability and climate    Publicize to local governments.

LOCAL GOVERNMENTS                                                                                               SECTION 12 – PAGE 99
                                             Implementation Plan and Timeline
           Strategies                          Near Term                            Mid Term                         Long Term
                                              2009 – 2011                          2012 2015                         2016 2020
   4-3: Statewide liaison to          Provide energy efficiency liaison       Ongoing implementation.         Ongoing implementation.
   assist local governments in        as of 1/1/09.
   energy                             Provide sustainability liaison as
   efficiency/sustainability/clim     of 7/1/09
   ate change programs                Provide climate change liaison
                                      as of 1/110
   4-4: Develop local projects        Identify issues to better               Expand implementation.          Ongoing implementation
   that integrate energy              integration.
   efficiency/DSM/,                   Develop and implement pilot
   water/wastewater end use.          projects, such as the California
                                      Sustainable Communities

   4-5: Develop energy                Plan approaches by 12/2009.             Ongoing refinement of           Ongoing implementation
   efficiency-related “carrots”       Launch approaches by 12/2010.           approaches based on
   and “sticks” using local           Approach in place by 6/2009.            feedback from
   zoning and development             Requirement in place by                 implementation efforts.
   authority.                         12/2010.

 Goal 5: Local government energy efficiency expertise becomes widespread and typical.
 Many local governments do not have adequate                                 1) which will be easier for local governments to
 dedicated staff or resources to move proactively                            embrace and promote than if codes are
 on energy efficiency in their own or community                              developed independently each time.
 buildings. They also often lack capacity or
 awareness to promote building and zoning                                    Even so, a focused effort on development of
 codes that would dramatically accelerate green,                             local government energy efficiency expertise is
                                                                             critical to the State’s energy efficiency goals.
 efficient buildings within their jurisdictions.
                                                                             Programs such as the regional technical
 The workforce education and training strategies                             assistance and education centers in Marin,
 outlined elsewhere in this Plan are one vehicle                             Ventura, and Humboldt that work with local
 for attacking these issues. Another is the                                  governments, schools, and special districts in
 standardization of tiered voluntary building                                their areas, are an example of effective training
 codes across the state (as described in Strategy                            programs.

                                    Goal 5: Local Government Energy Efficiency Expertise
                                                     Implementation Plan and Timeline
                      Strategies                             Near Term                           Short Term                 Long Term
                                                            2009 – 2011                          2012 2015                  2016 2020
          5-1: Create a menu of products,           Identify menu by 9/2009.               Ongoing implementation.         Ongoing
          services, approved technologies           Plan for delivery of menu in                                           implementation.
          and delivery channels for local           place by 12/2009.
          governments that currently lack           Begin delivery by 3/2010.
          deep expertise in energy

LOCAL GOVERNMENTS                                                                                                          SECTION 12 – PAGE 100
                                                   Implementation Plan and Timeline
                      Strategies                          Near Term                       Short Term                Long Term
                                                         2009 – 2011                      2012 2015                 2016 2020
           5-2: Develop model local               Complete model                     Ongoing implementation.      Ongoing
           ordinances/programs to assist          ordinances/programs by 2009.                                    implementation.
           local governments participate in       Leadership governments begin
           regional coordinated efforts for       pilots.
           energy efficiency, DSM, renew-         Communicate information on a
           ables, green buildings, and zoning.    peer-to-peer basis.

           5-3: Establish a statewide effort to   Identify the most suitable peer-   Ongoing refinement and       Ongoing
           facilitate peer-to-peer learning,      to-peer learning vehicle by        improvement.                 implementation.
           such as a “local champions”            6/2009.
           program or a governor’s invitation-    Implement peer-to-peer learning
           only local government leaders’         vehicle by 12/2009.
           5-4: Statewide technical               Develop program in 2009.           Implement statewide in       Ongoing
           assistance program for local                                              2010.                        implementation.
           governments, including peer-to-
           peer expertise exchange

LOCAL GOVERNMENTS                                                                                              SECTION 12 – PAGE 101
        The California investor-owned utilities would like to acknowledge the invaluable contributions
        made to the California Energy Efficiency Strategic Plan by hundreds of workshop participants and
        others. We note the list of workshop participants that comprises Appendix A and cite in particular
        the following individuals for contributing to the development of this Strategic Plan.

        California Public Utilities Commission
        Commissioner Dian M. Grueneich
        Theresa Cho
        Jeanne Clinton
        Cathleen Fogel
        Jamie Fordyce
        David Gamson
        Këri Bolding
        Hazlyn Fortune

        Numerous CPUC staff contributed to the Strategic Plan including the following, who served as
        CPUC point people on particular topics
                                                                         (Lists in alphabetical order by last name)

        Kay Hardy                                            Johanna Sevier
        Peter Lai                                            Ava Tran
        Jean Lamming                                         Pam Wellner
        Ayat Osman                                           Michael Wheeler
        Lisa Paulo
        Anne Premo

       Karl Brown, California Institute for Energy and Environment
       Pete Canessa, Center for Irrigation Technology, California State University Fresno
       Karin Corfee, KEMA Inc.
       Cyane Dandridge, Executive Director of Strategic Energy Innovations
       Rick Diamond, Lawrence Berkeley National Laboratory
       Bob Graves, Green Technology
       Val Jensen, ICF, Inc.
       Debbie McGhee, Project Performance Corporation
       Aimee McKane, Lawrence Berkeley National Laboratory
       Michael Messenger, California Energy Commission
       Carl Smith, Green Technology
       David Zoldoske, Center for Irrigation Technology, California State University Fresno

ACKNOWLEDGEMENTS                                                                                                      PAGE 102
    IOU Staff Leads
    Don Arambula, SCE
    Athena Besa, SDG&E/SCG
    William Miller, PG&E

    Numerous IOU staff and management contributed to the Strategic Plan including the following, who
    served as statewide IOU leads on particular topics.
    Gregg Ander, SCE

    Barbara Cronin, SDG&E/SCG                                Jack Parkhill, SCE
    Tom DeCarlo, SDG&E/SCG                                   Carlos Ruiz, SCG
    Patsy Dugger, PG&E                                       Charles Segerstrom, PG&E
    John Fasano, SCE                                         Frank Spasaro, SDG&E/SCG
    Rick Hobbs, SoCalGas                                     Frances Thompson, PG&E
    David Jacot, SCE                                         Vinnie Tucker, SCE
    Paul Kyllo, SCE                                          Sandra Williams, SDG&E
    Mary O’Drain, PG&E                                       Joy Yamagata, SDG&E/SCG
    Angie Ong-Carrillo, PG&E

    IOU Strategic Planning Consultants
    Ziyad Awad, Awad & Company, Inc.
    Dan Frederick, Daniel C. Frederick Consulting Services
    David Nemtzow, Nemtzow & Associates
    Steve Schiller, Schiller Consulting Inc.

    Low Income Oversight Board Members
    Vinita Thakkar, SDG&E
    Ricardo Amon, CEC
    Norm Bourassa, CEC
    Martha Brook CEC
    Bill Pennington CEC
    Daryl Mills, CEC
    Amy Morgan, CEC
    Bill Pennington, CEC
    John Sugar, CEC
    John Wilson, CEC

ACKNOWLEDGEMENTS                                                                                       PAGE 103
 AB 32             Assembly Bill 32/California Global Warming Solutions Act of 2006
 ABAG              Association of Bay Area Governments
 AC                Air Conditioning
 ACCA              Air Conditioning Contractors of America
 ACEEE             American Council for an Energy-Efficient Economy
 ACR               Assigned Commissioner Ruling
 AHRI              Air Conditioning, Heating and Refrigeration Institute
 AIA               American Institute of Architects
 AMBAG             The Association of Monterey Bay Area Governments
 AMI               Advanced Metering Infrastructure
 ANSI              American National Standards Institute
 ASAP              Appliance Standards Awareness Project
 ASHRAE            American Society of Heating, Refrigerating, and Air-Conditioning Engineers
 BBEES             Big Bold Energy Efficiency Strategies
                   Three programmatic initiatives identified by the California Public Utilities
                   Commission in Decision 07-10-032
 BIRA              Building Industry Research Alliance
 BOC               Building Operator Certification
 BTH               Business, Transportation and Housing Agency
 BuRec             Bureau of Reclamation
 C&S               Codes and Standards
 CAB               California Architects Board
 CAIA              California Agricultural Irrigation Association
 CAISO (or ISO)    California Independent System Operator

LIST OF ACRONYMS                                                                                  PAGE 104
 CALBO             California Building Officials
 CalWORKS          California Work Opportunities and Responsibility to Kids
 CARB (or ARB)     California Air Resources Board
 CBO               Community-based Organization
 CDFA              California Department of Food and Agriculture
 CDE               California Department of Education
 Energy            California Energy Commission
 CEE               Consortium for Energy Efficiency
 CEEA              California Energy Efficiency Alliance
 CEESP             California Energy Efficiency Strategic Plan
 CFL               Compact Fluorescent Lamp or Light
 CO2               Carbon Dioxide
 CPUC              California Public Utilities Commission
 CSAC              County Supervisors Association of California
 CSI               California Solar Initiative
 CSLB              California State License Board
 CSU               California State University
 Cx                Commissioning
 DC                Direct Current
 DCSD              Department of Community Services and Development
 DEER              Database for Energy Efficient Resources
 DG                Distributed Generation
 DOE               U.S. Department of Energy
 DR                Demand Response
 DRA               Division of Ratepayer Advocates
 DSM               Demand-Side Management

LIST OF ACRONYMS                                                              PAGE 105
 DSS               Department of Social Services
 DWR               California Department of Water Resources
 EAP               California Energy Action Plan
 ED                California Public Utilities Energy Division
 EDD               Employment Development Department
 EE                Energy Efficiency
 EM&V              Evaluation, Measurement and Verification
 EMS               Energy Management System
 EPA               U.S. Environmental Protection Agency
 EPRI              Electric Power Research Institute
 ESCO              Energy Service Company
 ET                Emerging Technology or Emerging Technologies
 ETAAC             Economic and Technology Advancement Advisory Committee
 ETCC              Emerging Technologies Coordinating Council
 ETP               California Employment Training Panel
 FSEC              Florida Solar Energy Center
 GAIN              Greater Avenues for Independence
 GHG               Greenhouse Gas
 GWh               Gigawatt Hour
 HARDI             Heating, Air Conditioning and Refrigeration Distributors International
 HDTV              High Definition Television
 HERS              Home Energy Rating System
 HVAC              Heating, Ventilation and Air Conditioning
 ICLEI             International Council for Local Environmental Initiatives
 ID                Irrigation Districts or Integrated Design
 IEPR              Integrated Energy Policy Report
 IOU               Investor-Owned Utility

LIST OF ACRONYMS                                                                            PAGE 106
 ISO               See CAISO or International Organization for Standardization
 ITP               U.S. Department of Energy’s Industrial Technologies Program
 kWh               Kilowatt Hour
 LBNL              Lawrence Berkeley National Laboratory
 LCD               Liquid Crystal Display
 LEED              Leadership in Energy and Environmental Design
 LG                Local Government
 LGC               Local Government Commission
 LIEE              Low Income Energy Efficiency
 LIOB              Low Income Oversight Board
 LOC               League of California Cities
 ME&O              Marketing, Education and Outreach
 Mth               Million Therms
 MW                Megawatt
 MWh               Megawatt Hour
 NATE              North American Technician Excellence
 NBI               New Buildings Institute
 NIST              U.S. Department of Commerce’s National Institute of Standards and Technology
 NRCS              Natural Resources Conservation Service
 NREL              National Renewable Energy Laboratory
 NWEEA             Northwest Energy Efficiency Alliance
 O&M               Operations and Maintenance
 PA                Program Administrator
 PDA               Personal Digital Assistant
 PG&E              Pacific Gas and Electric Company
 PIER              Public Interest Energy Research
 POU               Publicly Owned Utility
 PV                Photovoltaic

LIST OF ACRONYMS                                                                                  PAGE 107
 QI/QM             Quality Improvement/Quality Management
 R&D               Research and Development
 RCx               Retrocommissioning
 RD&D              Research, Development and Demonstration
 RECO              Residential Energy Conservation Ordinances
 RFP               Request for Proposals
 RH                Relative Humidity
 SanDAG            San Diego Association of Governments
 SCAG              Southern California Association of Governments
 SCE               Southern California Edison
 SCG (or           Southern California Gas Company
 SDG&E             San Diego Gas & Electric Company
 SFLI              Single Family Low Income
 SGIP              Self-Generation Incentive Program
 SMJU              Small and Multijurisdictional Utility
 SMUD              Sacramento Municipal Utility District
 SWEEP             Southwest Energy Efficiency Project
 TURN              The Utility Reform Network
 TRC               Total Resource Cost
 UC                University of California
 USDA              U.S. Department of Agriculture
 USGBC             U.S. Green Building Council
 WCEC              Western Cooling Efficiency Center
 WE&T              Workforce Education and Training

 WWD               Wind Wave Direction

 ZNE               Zero Net Energy

LIST OF ACRONYMS                                                    PAGE 108
  California Public Utilities Commission Decision 07-10-032. (D.07-10-023) Available at:
  Extensive documentation of the materials developed though the strategic planning process is available at:
  “Energy Action Plan II, Implementation Roadmap for Energy Policies”, California Energy Commission and California
   Public Utilities Commission, September 21, 2005. Available at:
  “Energy Action Plan I”, California Energy Commission, California Public Utilities Commission and Consumer Power
   and Conservation Financing Authority. May 8, 2003. Available at:
    California Energy Commission, 2007 Integrated Energy Policy Report (2007 IEPR), adopted December 5, 2007.
    CEC-100-2007-008-CMF. Available at:
    California Air Resources Board “Climate Change Draft Scoping Plan: A Framework for Change” June 2008
    Discussion Draft. (CARB Scoping Plan) p. 7. Available at:
    2007 IEPR.
    McKinsey and Co. “Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost? U.S. Greenhouse Gas
    Abatement Mapping Initiative” Executive Report, December 2007. Available at:
  Assembly Bill No. 32 (Pavley, 2006) California Health and Safety Code, §§ 38500 et seq. Available at:
   CARB Scoping Plan p. 13.
   Ibid. pp 21-22. The Draft Plan Appendices consider a more stringent target for energy savings of 40,000 GWh.
   Currently under consideration, the Plan has not incorporated such savings into their statewide calculus to date.
     Energy Independence and Security Act of 2007. (EISA 2007) Public Law 110–140. Dec. 19, 2007. Available at:
   D.07-10-023, p.33.
   California Public Utilities Commission Decision 98-04-063, Appendix A
   D.07-10-023, p.150
    The CPUC has defined “Zero Net Energy” as the implementation of a combination of building energy efficiency
     design features and clean distributed generation that result in no net purchases from the electricity or gas grid, at
     the level of a single “project” seeking development entitlements and building code permits. Definition of zero net
     energy at this scale enables a wider range of technologies to be considered and deployed, including district heating
     and cooling systems and/or small-scale renewable energy projects that serve more than one home or business.
     Transcripts of the three stakeholder workshops—as well as the written comments submitted—are available on the
     strategic planning website:
     2007 IEPR
     California is served by well over 60 electricity and natural gas distribution companies. (Energy Commission at; and U.S. Census Bureau, 1997 Economic Census
     December 29, 1999, which counts over 200 utilities) Some smaller utilities may not offer residential customers
     opportunities to participate in energy efficiency programs. However, a large majority of California residents are
     served by utilities that do offer energy efficiency programs. (See also endnote 3 below.)
     Thirty percent (30%) is the proportion of IOU-served residential households qualifying for Low Income Energy
     Efficiency (LIEE) programs. IOUs serve about 10.5 million residential customers (CPUC at, or approximately 83% of California households. The proportion of LIEE-
     qualifying households served by publicly-owned utilities is assumed to be similar.
     Assembly Bill No. 1109 (Huffman, 2007) Public Resources Code §§ 25402 et seq. Available at:

ENDNOTES                                                                                                           PAGE 109
     2007 IEPR, pp. 88.
     D.07-10-032, p.38.
     See, for instance, US Green Building Council Leadership in Environmental and Environmental Design
     (LEED) ( or UK Code for Sustainable Homes
   In establishing the New Solar Homes Partnership (NSHP), the Energy Commission requires that new residential
   buildings granted an incentive under the NSHP exceed California’s Title 24 Building Energy Efficiency Standards.
   This helps the combined energy efficiency and solar project to be as affordable as possible over the life of the
   home. To qualify for “Tier II” incentives, the home must exceed Title 24 standards by 35%. For more information
   regarding the Energy Commission’s New Solar Homes Partnership and qualifying energy efficiency standards, go
   BSC Green Building Standards. Available at:
   San Francisco 2008 Green Building Ordinance, Available at:
   Los Angeles 2008 Green Building Ordinance, Available at:
   At the end of 2007 (prior to the mortgage crisis), only one-in-three of the state’s households could afford a
   conventional entry level home, an improvement from one-in-four a year earlier, but still challenging for prospective
   home buyers. See: “Housing Affordability Improves as Prices and Rates Decline”, Robert A. Kleinhenz, California
   Association of Realtors, February 2008.
   United States Department of Energy. “Residential Energy Consumption Survey.” 2001. Available at:
   For more information on UC Davis’s California Lighting Technology Center. go to:
   For more information on DOE’s L-Prize, go to:
   Federal, state and local governmental buildings and facilities are categorized as “commercial” and implicitly
included in the strategies of this Chapter and periodically differentiated as warranted; additionally, local governmental
buildings are discussed extensively in the Local Government Chapter of this Strategic Plan.
   For more information on the 2030 Challenge go to:
   For more information on California’s Green Buildings Initiative, go to:
   For more information on California’s Grid Neutral Schools Program, go to:
   California Energy Commission, Options for Energy Efficiency in Existing Buildings. December 2005. CEC-400-
2005-039-CMF. Available at:
   Assembly Bill 1103 (Saldana, 2007) Public Resourc eCode, §§ 25402 et seq. Available at:
     California Energy Commission,
     2007 IEPR.
     CARB Scoping Plan, p.7.
   2007 IEPR.
   For more information on the Superior Energy Performance Partnership, go to:
   For more information on the ANSI-accredited Plant Energy Efficiency Certification Program initiated through SEPP
go to:
47 and
     2007 IEPR, p. 13.
     Assembly Bill 1103 (Saldana, 2007) Public Resourc eCode, §§ 25402 et seq. Available at:
     This Plan examines residential and small commercial HVAC, and therefore implicitly assumes unitary equipment
     (packaged and split) that is 20 tons and below, rather than large, built-up HVAC. Large systems are an important

ENDNOTES                                                                                                         PAGE 110
     energy efficiency and peak management issue but, pursuant to the Commission’s big, bold Programmatic Initiative
     in D.07-10-032, are not directly examined in this Chapter as they have a very different marketplace dynamic than
     unitary systems. Many of the factors that influence efficiency of large systems are examined in the Commercial
   Chris Neme, John Proctor, and Steve Nadel, National Energy Savings Potential from Addressing HVAC Installation
   Problems; (Prepared for the U.S. EPA, February 1999.) Available at:
   “Strategic Plan to Reduce the Energy Impact of Air Conditioners” AB 2021 Report” June 2008. CEC-400-2008-010.
   Available at:
     Section 306 of EISA 2007 allows, for the first time, for the U.S. Secretary of Energy to set regional standards for
     certain HVAC equipment.
  Appliances are, in fact, primarily regulated at the Federal level; and for any product that is regulated at the Federal
level states are preempted from regulating. Buildings are primarily regulated at the state level; notable exceptions are
manufactured housing (which is Federally regulated) and hospitals.
     2007 IEPR.
  Chris Neme, John Proctor, and Steve Nadel, National Energy Savings Potential from Addressing HVAC Installation
Problems (Prepared for the U.S. EPA, February 1999). Available at:
   See for example Quantec, Statewide Codes and Standards Market Adoption and Noncompliance Rates. Prepared
for Southern California Edison May 10, 2007.
   EISA 2007 requires state to initiate smart grid proceedings by the end of 2008. All of the IOUs have already filed for
   recovery of infrastructure investments for smart grid.
   “Plugging in the Consume: Innovating Utility Business Models for the Future” IBM Institute for Business Value,
   2007. Available at:
   California Energy Commission recently held on this emerging CEC Smart Grid research initiative, “Defining the
   Pathway to the California Smart Grid of 2020”. Agenda available at:
   The topical convener reports are summaries based on the input received at publicly-held workshops attended by
   stakeholders, experts, IOU staff and others to provide information and discussion in the development of the
   California Energy Efficiency Strategic Plan. The CPUC convened the workshops and enlisted leading subject
   matter experts to serve as conveners for each sector and crosscutting issue in this process. The HVAC Convener
   Report itself can be found on the California Energy Efficiency Strategic Plan site,
   D.07-10-032, p. 59.
     D.07-10-032, pp. 64-65.
     “Local governments” primarily refers to cities and counties, which have land use authority. However, there are also
     important roles for regional government, metropolitan planning organizations, school and special districts and other
     local and regional government entities.
     California Public Utilities Commission Decision 99-08-021, Ordering Para. 11. See also D.01-01-060 directing the
     utilities to increase partnerships with local governments to achieve energy efficiency at the local level.
     Quantec, Statewide Codes and Standards Market Adoption and Noncompliance Rates. Prepared for Southern
     California Edison, May 10, 2007. Available at:
     For more information on the Cambridge project, go to:
     Assembly Bill 811 (Levine, 2008) Streets and Highway Code, §§ 5898 et seq. Available at:

                                        (END OF ATTACHMENT A)

ENDNOTES                                                                                                           PAGE 111

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