Energy Efficiency – Crossing the “Tipping Point” in 2009

1. Energy Efficiency – Crossing the “Tipping Point” in 2009 Commissioner Julia Levin California Energy Commission www.energy.ca.gov December 2, 2009

2. 2009 Game Changers for Energy Efficiency American Recovery and Reinvestment Act (ARRA) - Stimulating Energy Efficiency AB 758 – Energy Efficiency for Existing Buildings - How Low Can We Go ??

3. Federal Stimulus Bill (ARRA) signed February, 2009

4. ARRA Energy-Related Programs • Total of $42 billion for Energy Programs and Projects • $11.3 billion in formula-based funding • $30.7 billion in technology–focused competitive and direct grant, loan and loan guarantee funds, tax incentives

5. Energy Commission ARRA Programs $226 million - State Energy Program $49.6 million - Energy Efficiency & Conservation Block Grant Program (for small jurisdictions only) $35.6 million - State Energy Efficiency Appliance Rebate Program $3.6 million - Energy Assurance and Planning

6. State Energy Program - $226 million Funds Allocated for Energy Efficiency Include: • $95 million - Energy Efficiency Retrofit Programs • $25 million - Revolving Loan Program to retrofit state owned buildings • $20 million - Green Job Workforce • $25 million - local government loans

7. State Energy Program Timeline • All SEP funds must be encumbered by Sept 30, 2010 and fully drawn down by April 30, 2012 • Solicitations Deadlines and awards differ by program element

8. Energy Efficiency Retrofit Program - $95 million • Municipal Financing Programs • Local Governments Finance Retrofits • Repaid through Property Tax Assessments • Funding Available for Specified Uses • Municipal/Commercial Retrofits • Funds Public and/or Private Partnerships • Must Implement a Few Targeted Measures in Large Number of Buildings • Required Best Practice Measures Approved by Commission • Comprehensive Residential Retrofits • Funds Regional Consortia – Local Governments, Utilities, Affordable Housing, Energy/Building Contracting Experts • Requires Tiered Approach, Specific Program Elements, Transition to Whole-House Retrofits

9. Green Workforce Development

10. Green Job Funding Sources • An Estimated $47 million will be awarded to regional workforce development programs: • $20 million from State Energy Program (ARRA) • $15 million from Alternative and Renewable Fuel and Vehicle Technology Program (AB 118) • $12 million from Public Interest Energy Research program for green partnership academies

11. AB 758 – Energy Efficiency Retrofits Signed September 2009

12. Summary of AB 758 • Calls for a comprehensive program to achieve energy savings in CA’s existing building stock • Complimentary portfolio of program components • Meaningful assessment of each building’s energy consumption: - relative efficiency compared to other buildings - opportunities to improve • Significant energy efficiency improvements

13. AB 758 Program Components • Building Energy Rating systems (e.g. HERS) • Labeling and Disclosure Programs • Audit Requirements • Financing Options • Public Awareness Campaign • Workforce Development • Requirements for Energy Efficiency Improvements • Energy Code Compliance and Enforcement • Program Monitoring, Evaluation & Revisions

14. AB 758 Direction CEC must develop and implement program, in collaboration with CPUC and a wide range of industry stakeholders CPUC to conduct proceeding for on-bill financing & report IOU incentive program activity linked to AB 758 POUs to report incentive program focused on existing buildings

15. Next Steps on AB 758: Use ARRA SEP programs to pilot workforce development, financing and retrofit concepts Pilot rating, retrofit and financing program concepts with utility partners Complete concept paper & discuss with key partners Open formal rulemaking by March 2010 Conduct workshops throughout 2010

16. For More Information: • ARRA and Economic Recovery: CA: www.energy.ca.gov/recovery Federal: www.energy.gov/recovery • Energy Efficiency and AB 758: www.energy.ca.gov/efficiency www.leginfo.ca.gov/bilinfo.html