1. STAKEHOLDER ENGAGEMENT PROCESS FOR ENERGY EFFICIENCY BUSINESS PLAN DEVELOPMENT March, 2016

2. Agenda History of the Coordinating Committee (CC) Purpose and goals of the stakeholder process Subcommittee process Tentative schedule How to get involved 2

3. History and background of Coordinating Committee 3

4. Background of the Stakeholder Process July 2013: Group of parties joined together to propose recommendations for energy efficiency January 2015: Joint Parties submitted general concept of how a rolling portfolio (ongoing program planning) process can work March 2015: Joint Parties presented rolling portfolio proposal at a 2-day CPUC workshop October 2015: Decision outlining rolling portfolio process, including stakeholder process 4

5. Purpose of the Coordinating Committee 1.Facilitate an open and transparent process 2.Review initial design and augmentation of efficiency business plans and related items 3.Seek to find efficiencies in various formal and informal processes 4.Improve accessibility and transparency of energy efficiency activities 5.Provide a scheduled forum to discuss ideas or to resolve differences 5

6. Goals of the Coordinating Committee 1.Support high-quality efficiency programs that reduce greenhouse gas emissions in line with state climate and energy goals while responding to customer needs and market dynamics 2.Improve collaboration and communication among parties and with Commission staff 3.Reduce differences in positions through informal discussions, narrowing the issues that need to be addressed by the Commission 4.Increase speed of Commission review of filings 6

7. Goals of the CC Cont. 5.Provide greater opportunities to leverage industry expertise (broader than parties) 6.Increase transparency and enable a deeper understanding of offerings and long-term strategic vision 7.Provide meaningful and useful input during early stages of design and during augmentation of efficiency business plans and other relevant planning documents 8.Help achieve the State’s climate & energy objectives 7

8. Roles of Participants The CC’s role is “to advise the PAs” and should be a balanced representation of stakeholders, not dominated by any PA or non-PA stakeholder. The Commission continues to be responsible for oversight of PAs and approval of programs, budgets, policies, and other items currently within the purview of Commission authority. Parties/Stakeholders continue to participate in the existing formal process and have the opportunity to comment on the record regardless of what is discussed or decided as part of the CC and related stakeholder processes. 8 Source: CC Charter and D.15-10-028

9. Roles of Participants Cont. The Program Administrators (PAs) continue to be responsible for the content of what is filed with the Commission (i.e., applications and advice letters) and for administering portfolios that best meet Commission guidance, State goals, and customer needs. PAs also bear responsibility for what PAs post to Commission-maintained web sites pursuant to this decision (e.g., implementation plans). 9 Source: CC Charter and D.15-10-028

10. Terms Coordinating Committee (consistent members) – Forum for high level policy discussions – Implementation of stakeholder process Subcommittees (flexible members) – Sectors identified in D.15-10-028 (p.47) – Substantive input at each stage of BP development Comparison document (if needed filed with BP) – Description of differences of ideas, filed with CPUC – Provides decision trail, information for CPUC 10

11. CC Members 11

12. Subcommittee Overview 12

13. Subcommittee Purpose Subcommittees will be used to review and provide early input into business plans, prior to presenting at the CC level (Charter, p.4) This is where the detailed, “in the weeds” work gets done to inform the business plans Subcommittee meetings should: – Allow for easy participation – Leverage existing forums – Combine efforts when possible (e.g., schools) – Coordinate with cross-cutting efforts – Follow decision trail and logistics of CC charter 13

14. Role of Subcommittee Participants Participate actively and productively (no commitment, can join one or more meetings) Review material in advance of meeting Share feedback early to inform BP development (in person or written) Focus on program/strategy/intervention design consistent with the strategic plan and other state and energy agency requirements Feedback related to BP development should be provided to the SC before it is discussed at the CC 14

15. Approach to Providing Input 15

16. Proposed Roadmap for Business Plans 16 Stage 1: Market assessment and gap analyses Stage 2: Ideas for intervention strategies and metrics Stage 3: Next level of detail for BPs; connection to EM&V Stage 4: Near final business plan review

17. Upcoming Schedule March 15 – Coordinating Committee meeting – Gap Analysis for Codes & Standards – Gap Analysis for Emerging Technology March 16 – Gap Analysis for Public Sector Business Plans March 17 – Gap Analysis for Agricultural Sector – Gap Analysis for Industrial Sector March 18 – Workforce, education and training 17

18. Tentative Schedule 4/11 and 5/2 week: Res/Com 4/18 and 5/9 week: Public/Ag/Ind/Cross Cutting 5/18-5/19: Coordinating Committee (CC) meeting for Program Administrators (PAs) to present their Res and Com initial Business Plans 6/1: CC Meeting for PAs to present public 6/14-6/15: CC Meeting for PAs to present Ind/Ag/Cross-cutting 18

19. How to Get Involved Contact Lara Ettenson (NRDC): Co-chair of the Coordinating Committee for more information: lettenson@nrdc.org lettenson@nrdc.org 19

20. Appendix 20

21. Business Plan (D.15-10-028) “Business plans will explain at a relatively high level of generality how PAs will effectuate the strategic plan.” (p.46) “Business plan filings will generally be untethered to the calendar.” (p. 46) “There will be a stakeholder process associated with business plan preparation.” (p.47) 21

22. Implementation Plan (D.15-10-028) “Implementation Plan – PA and stakeholder developed, not formally filed…provides detail on programs/implementation strategies.” (p.43) “PAs will still need to set more granular metrics than just sector-level metrics, but they will do so in implementation plans, not business plans…the business plan is not the place for that additional level of detail.” (p.52) 22

23. Intent of Staged Approach to Planning Provide opportunity for stakeholders to offer input early and often Allow for additional information to be integrated as the plans are being developed Leverage expert stakeholders (not only parties) at the subcommittee level to ensure the right voices are part of the discussion Enable modifications as appropriate prior to presenting a completed product 23

24. Stage 1: Market assessment and gap analyses Purpose: to identify the problem statement and level the “information playing field” for non-PAs Example Questions: – What is the state of the market sector? – What info is being used to inform business plans? – What data gaps are there? – What market problems are we trying to solve? Stakeholder process: Solicit input from stakeholders re: whether or not this is the right data set to inform the development of Program Administrators’ Business Plans 24

25. Stage 2: Ideas for intervention strategies & metrics 25 Purpose: to discuss ideas and think creatively to address gaps identified in Phase I as well as identify metrics to measure success over time Example Questions: – What interventions have been working or not? – What are new ideas that have yet to be tried? – What recent pilots could be leveraged? – How do we measure success of the strategies? Stakeholder process: Discuss PA ideas intervention strategies & metrics; allow for additional intervention ideas that also meet CPUC guidance; inform the detailed BP outline (Stage 3)

26. Stage 3: Further detail of BP; connection to EM&V 26 Purpose: to further flesh out BP, including how it connects to EM&V plan Example Questions: – Which strategies should be included? – How does it connect to EM&V and CPUC guidance? – What are the expected results? – How will this solve the identified market barriers? Stakeholder process: Review and provide input into further fleshed out BP re: strategies, metrics, and how it connects to EM&V and CPUC guidance

27. Stage 4: Near Final Business Plan Review 27 Purpose: to provide a completed near final BP of how the PA will advance EE in the market sector Example Questions: – What are the chosen strategies for this sector? – How does this connect to other PA BPs? – How was stakeholder input included? Stakeholder process: Review and provide input into near final business plans, keeping in mind direction and current rules of the CPUC; provide input for comparison document, if needed