1. California Energy Efficiency Strategic Plan (CEESP) Low Income Oversight Board March 19 (Los Angeles)

2. 2 Energy Efficiency Strategic Planning Process COMMERCIAL CPUC, IOUs, Conveners, Stakeholders Agriculture CPUC, IOUs, Conveners, Stakeholders Industrial CPUC, IOUs, Conveners, Stakeholders Marketing, Education and OutreachWorkforce Education & TrainingEmerging Tech./Codes & StandardsDSM IntegrationLocal Government Integration / Writing Public Workshop San Francisco Public Workshop Los Angeles Public Workshop San Diego Draft Joint Strategic Plan Revise Draft Plan Final Joint Strategic Plan PROCESS *HVAC Big Bold Energy Efficiency Strategy spans Residential, Low Income, and Small Commercial sectors Nov 5 CPUC holds pre- hearing conference to launch Strategic Plan Process 4 Sectors and 8 cross-cutting themes established Workshops and webinars conducted Groups develop content of sector plans and cross- cutting proposals Low Income Workshop Conveners and IOU Leads present to writers Writers create the Draft Strategic Plan IOUs submit draft Strategic Plan on 2/8/08 & Supplement on 3/6/08 LIEE Program Delivery Workshop IOU LIEE CEESP Public Workshop IOUs collect comments on draft Strategic Plan IOUs submit final Strategic Plan 5/15/08 IOUs submit individual 2009- 2011 Energy Efficiency Portfolios & Low Income Program plans on 5/15/08 Nov/Dec 2007Jan 2008Feb/Mar/Apr 2008May 2008 HVAC* Residential CPUC, IOUs, Conveners, Stakeholders Low Income CPUC, IOUs, Conveners, Stakeholders

3. 3 Background: Plan upholds other key EE efforts in California  Energy Action Plan: Places energy efficiency first in the loading order of utility resources  Integrated Energy Policy Report (IEPR): Recommends California set out on a path to achieve all economic energy efficiency  2006-2008 portfolio: Will produce an estimated $2.7 billion in net resource benefits – a 2-to-1 return on the efficiency investment  Current Legislation: AB32, AB2021, Low Income, CSI, Energy Independence and Security Act of 2007, and National Action Plan for Energy Efficiency Decision (07-10-032) directs IOUs to develop this Draft California Energy Efficiency Strategic Plan Decision (07-12-051 directs LIEE be incorporated into the Plan.

4. 4 Statewide Energy Efficiency Strategic Plan: Objective  Everything is at www.californiaenergyefficiency.comwww.californiaenergyefficiency.com  Objective = EE is “Business as Usual” in California by 2020  Integration – EE, DR, CSI, Low Income, and other DSM offerings  Innovation – Accelerate new efficient products and practices  Collaboration – Expand collaboration across energy stakeholders across California and the Western U.S.  Directional – Long-term focus on market transformation and codes & standards with near-term EE policy rule changes; Lead to “next generation” EE programs  Aspirational – Strategic plan objectives are not goals; utilities will not be held responsible for attainment  Today’s Presentation  IOU team will present the Low Income sector and related Cross Cutting strategies of the draft Strategic Plan  We welcome your comments after this brief presentation

5. 55 Low Income Energy Efficiency: Overview  The CPUC has adopted a vision for LIEE: To provide all eligible consumers the opportunity to participate in the LIEE programs and to offer those who wish to participate all cost-effective energy efficiency measures in their residences by 2020  The Commission also has directed a fresh look at LIEE to consider an expanded role as an energy resource  ~30% (5.5 million) IOU residential customers qualify for LIEE programs  The LIEE strategies presented in this draft Plan are preliminary  Planning for LIEE started late due to timing of the CPUC LIEE Decision (12/24/07)  LIEE planning is ongoing and will “catch up” by filing of the final Plan (5/15/08)  Expanding the role of LIEE as an energy resource may have particular implications for certain strategies operating across sectors, including:  Marketing, Education & Outreach  DSM Coordination & Integration  Workforce, Education & Training

6. 6 Low Income Energy Efficiency: Actions and Strategies (1 of 2) Key StrategiesKey Near-Term ActionsKey Stakeholders Develop customer segmentation to improve program delivery, increasing the opportunities for program participation and energy savings.  Identify customer sectors or segments using dimensions such as energy-use and geographic locations.  Develop and implement a plan to achieve 25% customer participation by year-end 2011.  Utilities  CPUC  LIOB  Stakeholders Pursue collaboration with and leveraging with other programs.  Identify key areas where leveraging and data sharing would be possible and advantageous.  Develop ways to work with community partners and other agencies to leverage available resources.  DCSD  CPUC  LIOB  Other Agencies  Stakeholders  Utilities Integrate LIEE programs with Energy Efficiency and other demand-side programs.  Ensure that Energy Efficiency messages include an LIEE awareness message and LIEE participants are aware of Energy Efficiency and DSM/EE programs.  Coordinate with CSI to ensure customers first receive LIEE services. Assess benefits of AMI for low income customers.  Utilities  CPUC  LIOB  CSI Administrator  Stakeholders LOW INCOME

7. 7 Low Income Energy Efficiency: Actions and Strategies (2 of 2) Key StrategiesKey Near-Term ActionsKey Stakeholders Develop and integrate LIEE workforce training requirements into the WE&T strategy aimed at reaching minority and other disadvantaged communities.  Develop awareness of Green Jobs Act of 2007 and other available funding opportunities to develop a trained workforce for the LIEE program.  Shift LIEE installation training from utilities to a wider network of providers as included in the WE&T chapter of the Plan. Training should be accessible to minority, low-income and disadvantaged communities  Educational Institutions  Dept. of Education  CPUC  LIOB  Utilities  CBOs  Building Trades  Workforce Development Boards Specify and employ program elements that emphasize long-term and enduring energy savings.  Continue to include measures that provide long term energy savings, such as refrigerators.  Develop strategies to modify behaviors and sustain savings  CPUC  DCSD  LIOB  Utilities Specify and deploy ME&O for LIEE program consistent with energy efficiency strategies.  Explore the use of a recognizable and trustworthy Brand for low income programs in California.  Identify, implement, and evaluate effective marketing, education and outreach methods for targeting low- income customer segments.  CPUC  Utilities  LIOB  Stakeholders  customers LOW INCOME

8. 88 Demand-Side Management (DSM) Coordination and Integration: Vision Vision: All demand-side management programs are coordinated and, as appropriate, integrated to increase the penetration of energy efficiency and avoid lost opportunities. ○Coordination/Integration can be pursued at two levels:  Energy efficiency, conservation, demand response, demand reduction, and on-site generation.  Energy, water, regulated greenhouse gases. ○Integration/Coordination offers generally accepted opportunities for greater benefits through synergy and by avoiding lost opportunities ○Integrating across technologies and/or objectives is not easy:  Administrative boundaries inhibit consistent goals and complicate funding  Knowledge and training gaps limit the number of people qualified to identify integrated measures  Differences among DSM objectives may lead to inconsistent/undesired results (e.g. increase electricity use to reduce waste to achieve water quality requirements). DSM COORDINATION AND INTEGRATION

9. 99 DSM Coordination & Integration: Actions and Strategies Key StrategiesKey Near-Term ActionsKey Stakeholders Establish integration procedures and determine the limits of integration through pilot projects.  Propose and launch pilots testing capabilities and effectiveness in the marketplace  Utilities  CPUC Improve regulatory coordination.  Establish a framework for improved regulatory coordination and develop a shared vision and process for regulatory coordination in California  CPUC  CEC  CARB  Legislature  Governor DSM COORDINATION & INTEGRATION

10. 10 Marketing, Education, and Outreach: Vision Vision: Californians are engaged as partners in the state’s energy efficiency, demand-side management and clean energy efforts for 2009 and beyond with the dual goals of informing them of the importance of energy efficiency, and their opportunities to take action. ○ME&O actions create and maintain a consumer culture that understands, accepts and pursues the financial and environmental benefits of EE. ○Motivating consumers to continue to engage in increasing levels of EE practices and purchases is limited by the belief of many consumers that they are already doing everything they can. ○ME&O must both motivate and inform on an ongoing basis to a consumer population that is diverse (and will continue to be diverse) in level of knowledge and level of motivation. MARKETING, EDUCATION, AND OUTREACH

11. 11 Marketing, Education & Outreach: Actions and Strategies (1 of 2) Key StrategiesKey Near-Term ActionsKey Stakeholders Explore the use of a recognizable and trustworthy brand for California’s energy efficiency and other DSM consumer products and services.  Assess equity in the current statewide Flex Your Power brand  CPUC  CEC  CARB  Utilities Utilize statewide segmentation research to develop targeted and highly relevant energy efficiency and DSM marketing messages to incite behavior change/action.  Develop a plan to undertake research to define discrete consumer segments  Develop a plan to undertake research that will describe segmented interests, awareness, attitudes/perceptions related to energy efficiency and global warming messaging including common language/terminology  CPUC  CEC  Utilities MARKETING, EDUCATION & OUTREACH

12. 12 Marketing, Education & Outreach: Actions and Strategies (2 of 2) Key StrategiesKey Near-Term ActionsKey Stakeholders Use social marketing techniques to build awareness and change consumer attitudes and perceptions.  Develop a roadmap for a social marketing approach  CPUC  CEC  Utilities Explore developing a website with statewide information on GHG reductions, efficiency and DSM awareness and options.  Enlist a technical expert to develop an energy efficiency/DSM website/portal  Gear initial website/portal development efforts to energy efficiency/DSM industry  Examine current regulatory rules to identify barriers/constraints Integrate technology into ME&O efforts  Establish clear objectives and metrics for the statewide campaign  CPUC  CEC  CARB  Utilities MARKETING, EDUCATION & OUTREACH

13. 13 Workforce Education & Training: Vision Vision: 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. ○WE&T focuses on workforce issues—educating and training people to perform the jobs needed to reach California’s clean energy goals. ○A significant barrier to increased EE activity is a shortage of human resources trained and motivated to identify and implement EE technology and operations improvements. WORKFORCE EDUCATION & TRAINING

14. 14 Workforce Education & Training: Actions and Strategies (1 of 2) Key StrategiesKey Near-Term ActionsKey Stakeholders Overarching. Five activities identified for creating integrated and collaborative support structure needed to drive long-term WE&T.  Develop Statewide WE&T needs assessment  Analyze cost-benefit mechanisms for utility support  Create WE&T specific web portal  Establish an on-going dialogue with market actors  Form WE&T Task Force  Department of Education  CPUC  Utilities K-12. Provide energy and environmental curriculum to promote the pursuit of energy efficient careers, as guided by high school career counselors.  Identify opportunities to leverage Governor’s career technical initiative  Department of Education  School districts Adult Education & Community Colleges. Drive enrollment by offering certification and degree programs that focus on energy efficiency and demand side management careers  Identify opportunities to utilize community colleges to provide technical training such as solar installation and building operator certification.  California Community Colleges Technical Training. Certify technicians and contractors and include financial analysis skills needed to sell energy efficient projects to customers.  Increase building operator training curriculums, training and professional career development programs in general.  Department of Education  Industry associations WORKFORCE EDUCATION & TRAINING

15. 15 Workforce Education & Training: Actions and Strategies (2 of 2) StrategiesKey Near-Term ActionsKey Stakeholders Higher Education Programs. Offer relevant degreed program tracks, courses and internship opportunities to support academic learning.  Utilize existing college extension programs to incorporate a continuing education curriculum component. Colleges and Universities Minority, Low Income and Disadvantaged Communities. Target communities to reach a high degree of participation and graduation from training and education programs.  Leverage ME&O and WE&T task forces to partner w/ CBOs and provide targeted outreach  California Community Colleges  CBOs WORKFORCE EDUCATION & TRAINING

16. 16 Roles of Local Governments: Vision and Goals Vision: By 2020, all of California’s local governments will be operating within an energy efficiency and renewable resource environment that is characterized by integrated state approaches, local engagement and cooperation, and informed energy action. LOCAL GOVERNMENT  Local engagement and cooperation. Cities & counties can actively engage EE & GHG issues, and participate in local & regional EE initiatives. Their participation in many instances is voluntary.  Informed energy action. Cities & counties can aggressively pursue EE goals and work w/ their utilities for community outreach to impact constituents’ energy usage  Best practices and education. Government buildings & infrastructure can show- case EE best practices. Professional licensing examinations should include an energy component for inspectors & contractors licensing.  Strategies. Address training, adoption and enforcement of efficient building codes, and role in community education and leadership.

17. 17 Energy Efficiency Program Planning Process Utility Workshops on 2009-11 Low Income Portfolio March Comments Wishing to Have Potential Impact on 2009-11 Portfolio Development Due March 24 LIEE Program Delivery Workshop March 28 LIEE Strategic Plan Public Presentation Workshop April 3 or 4 Comments Wishing to Have Potential Impact on First Strategic Plan Due April 15 First Strategic Plan and 2009-11 Portfolio Submitted to CPUC May 15 PLANNING DEADLINES