California Energy Efficiency Strategic Plan (CEESP)

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

2. PROCESS Final Joint Strategic Plan Draft Joint Strategic Plan Energy Efficiency Strategic Planning Process Nov 5 Nov/Dec 2007 Jan 2008 Feb/Mar/Apr 2008 May 2008 Workshops and webinars conducted Groups develop content of sector plans and cross-cutting proposals CPUC holds pre-hearing conference to launch Strategic Plan Process 4 Sectors and 8 cross-cutting themes established 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 COMMERCIAL • CPUC, IOUs, Conveners, Stakeholders Residential • CPUC, IOUs, Conveners, Stakeholders Public Workshop San Francisco HVAC* Low Income • CPUC, IOUs, Conveners, Stakeholders Public Workshop Los Angeles Revise Draft Plan Marketing, Education and Outreach Workforce Education & Training Integration / Writing DSM Integration Emerging Tech./Codes & Standards Local Government Public Workshop San Diego Agriculture • CPUC, IOUs, Conveners, Stakeholders Industrial • CPUC, IOUs, Conveners, Stakeholders *HVAC Big Bold Energy Efficiency Strategy spans Residential, Low Income, and Small Commercial sectors

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 DraftCalifornia Energy Efficiency Strategic Plan Decision (07-12-051 directs LIEE be incorporated into the Plan.

4. Statewide Energy Efficiency Strategic Plan: Objective • Everything is at www.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. 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 5

6. LOW INCOME Low Income Energy Efficiency: Actions and Strategies (1 of 2)

7. LOW INCOME Low Income Energy Efficiency: Actions and Strategies (2 of 2)

8. DSM COORDINATION AND INTEGRATION 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). 8

9. DSM COORDINATION & INTEGRATION DSM Coordination & Integration: Actions and Strategies 9

10. MARKETING, EDUCATION, AND OUTREACH 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. 10

11. MARKETING, EDUCATION & OUTREACH Marketing, Education & Outreach: Actions and Strategies (1 of 2) 11

12. MARKETING, EDUCATION & OUTREACH Marketing, Education & Outreach: Actions and Strategies (2 of 2) 12

13. WORKFORCE EDUCATION & TRAINING 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. 13

14. WORKFORCE EDUCATION & TRAINING Workforce Education & Training: Actions and Strategies (1 of 2) 14

15. WORKFORCE EDUCATION & TRAINING Workforce Education & Training: Actions and Strategies (2 of 2) 15

16. LOCAL GOVERNMENT 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 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. PLANNING DEADLINES Energy Efficiency Program Planning Process