5. Marketing, Education, Outreach, and Training
Marketing, education, and outreach (ME&O) are essential in promoting energy efficiency. Few consumers would participate in California's programs without information about their existing benefits. Education about the benefits of energy efficiency and other customer demand-side options is central to transforming energy efficiency from a program to a lifestyle. The Commission will continue to support robust funding to meet this goal.
Likewise, energy efficiency career training is a prudent investment. Trained personnel at every level are necessary to ensure California's energy efficiency efforts will not falter.
However, it is time to implement a more strategic use of ratepayer ME&O and training funds. In this decision, we take several actions to enhance our programs in this area. First, we direct the utilities to strengthen and expand the efforts they began in 2006 to develop an integrated, comprehensive approach to ME&O for all demand-side customer options, focusing particularly on energy efficiency. Integration includes more statewide coordination as well as comprehensive messages that combine the variety of energy reducing/avoiding options available to customers. We also provide direction to the utilities and our staff to update and expand our energy efficiency websites to make these tools more useful for both the energy industry and the general public.
Second, to maximize the effective use of funding in this area, we also direct the utilities to closely coordinate their training programs with each other and to investigate partnerships with public and private organizations. California is facing a shortage of trained people to plan, administer, implement, and evaluate our extensive energy efficiency efforts. Given our long-term commitment to energy efficiency, we must train hundreds, if not thousands, of people in critical skills in a very short time. Utility coordination, combined with new organizational partnerships will advance best practices in energy efficiency training and increase the impact of all efforts.
Finally, we will analyze the results of the pending EM&V study on outreach efforts and provide direction on the 2009-2011 portfolios plans accordingly.
5.1. Increased ME&O Integration and Coordination
Parties' Positions. Between 2006 and 2008, California ratepayers will have funded approximately $300 million for public education, marketing, and outreach to support customer demand-side programs.55 Of this amount, $176 million funds public education and outreach for utility energy efficiency programs.56 Approximately one-third of the funding is for statewide promotion of energy efficiency and the remainder is for educational efforts focused on individual utility territories. In addition, between 2006 and 2008 ratepayers are funding about $70 million for energy efficiency outreach to low income households,57 $80 million for demand response,58 and another $4.5 million for solar installations.59 The Commission has authorized an additional $180 million for ME&O efforts, throughout the roll-out and implementation phases, related to advanced metering infrastructure (AMI), which is the installation of meters, over several years, designed to provide real-time cost and usage information to individual customers.60
On June 21, 2007, the ALJ issued a ruling to assess whether and how to modify current ME&O approaches for energy efficiency programs to achieve efficiencies with other demand side programs, and better coordination with other entities that have similar programs. Numerous parties submitted comments and virtually all agreed that:
· ME&O are essential for optimal program results;
· New and improved coordination with local government and other entities is possible and will produce favorable results;
· Increased and consistent coordination across energy programs, such as those involving demand response, solar installations, and greenhouse gas reductions, is possible and will produce favorable results; and
· A central forum for identifying best practices, innovative strategies and new opportunities for coordination will advance improvements in ME&O.
Responding parties presented several strategies for promoting energy efficiency programs. The utilities generally reported some coordinated efforts, although no utility claimed that it was maximizing the opportunities in this regard. PG&E comments that leaders in the area of climate change are creating new opportunities for cooperative marketing efforts. SoCalGas argues that "sustainable design," which concurrently promotes energy efficiency, demand reduction, reductions in greenhouse gasses, and water conservation, is best marketed by a single entity, namely, the utility.
Other parties raise concerns that existing ME&O programs are fragmented and miss opportunities for increased energy savings. They generally agree that a more centralized strategic forum is needed. NRDC suggests that the utilities should lead it; EP Incorporated (EPI) prefers a Commission-led effort. TURN suggests the Commission consider the creation of an independent entity, like the NEEA, to develop and implement a long-term strategy for statewide ME&O. Schweitzer suggests a more comprehensive interactive website and use of the Energy Commission's New Solar Homes Program Advisory Committee to coordinate and develop marketing strategies. DRA proposes the Commission convene a task force to study ways to improve marketing efforts that includes marketing professionals and POUs. DRA asserts that energy efficiency should be treated like a product line that requires professionalized marketing strategies. It recommends the development of a recognizable and trusted brand for California energy efficiency products and services. DRA also recommends that all marketing efforts include conservation as a central message.
CCSF urges us to modify Policy Rule II.1, which currently states that energy efficiency is a critical part of the state's strategy to reduce the environmental impact (including GHG emissions) associated with the state's energy consumption. CCSF recommends that we rewrite the Policy Rule to include jointly marketing energy efficiency with water conservation, recycling, toxic reduction (particularly mercury from fluorescent lamps), solar, distributed generation, green buildings, low income and other related programs.
Discussion. We favor a coordinated ME&O effort across utility territories and consumer demand side options. Increased coordination will optimize the development and delivery of energy efficiency messages that inform consumers and motivate energy-saving activity. Such efforts can reduce costs while increasing the impact of energy efficiency measures, information and offerings. Indeed, the utilities proposed to develop in their current portfolio a "2006 Integrated Statewide Marketing and Outreach Plan."
We direct the utilities and third parties to expand their current efforts to achieve the following goals:
1. Coordination of related marketing, education and outreach programs, such as incentives for solar and other distributed generation installations, demand response programs, conservation and low income programs;
2. Coordination of providers with similar or related interests and services, such as local governments, community-based organizations, firms and municipal utilities;
3. Comprehensive approach to motivating all types of energy efficiency investments and behaviors; and
4. Cost-effective, high impact plan to drive maximum energy savings-both long term and short term-tailored to reflect the values, habits and demographics of different target communities and populations, particularly low income and ethnic groups.
For example, the utilities should undertake joint marketing of energy efficiency programs with other customer energy technologies, such as demand response and solar installations.
The utilities shall include a long-term coordinated approach to ME&O in the Strategic Plan. In addition to the direction provided above, the approach shall integrate outreach efforts on AB 32 and climate change, and rely on targeted information and messages to motivate energy efficiency and conservation actions and participation by the residential and small commercial sectors. The approach shall also describe new ME&O initiatives for the limited English population in California. The utility portfolio plan applications filed next spring shall include a specific section on ME&O that implements our directives today and the ME&O section of the Strategic Plan.
We agree with CCSF's proposed changes to the Policy Rules relating to the joint marketing of energy efficiency with other programs, and will address this in the next version of the Energy Efficiency Policy Manual. We direct Energy Division to update the Policy Rules, in accordance with the procedure set forth in Policy Rule XI.1. We direct the utilities to implement this Policy Rule update (and all other modification to the Policy Rules resulting from today's decision) in both the Strategic Plan and their applications for approval of 2009-2011 energy efficiency portfolios.
D.05-01-055 directed the utilities to fund the development of a data management system.61 As a result, the Energy Division staff and its consultants designed the Energy Efficiency Groupware Application (EEGA) to serve as a repository for the utilities' monthly and quarterly program reports and present energy efficiency program information in an organized, consistent, and useful manner that is readily accessible to the public, the Commission, and other agencies.62 D.05-01-055 also directed that as part of each program planning cycle, the IOUs should continue to reserve a portion of energy efficiency funding for the purpose of maintaining and expanding EEGA, to track savings, cost-effectiveness results and to support our resource planning and goal setting activities.63
We reaffirm the direction we provided in D.05-01-055 on the funding and development of EEGA. Namely, the IOUs should present proposed funding for EEGA as a separate budget line item in their 2009-2011 applications. Commission staff, or its contractor, will perform the work to maintain and expand EEGA, and the IOUs shall submit the necessary portfolio and program-level data in the format and frequency specified by staff. The IOUs should forward all program implementation plans to the Commission, as they are received, along with any other program or portfolio data that staff may require in order to monitor program performance. Commission staff will be responsible for determining the final scope of work for any maintenance and enhancements of EEGA. In the interest of time, staff may choose to use the existing contracting structure for EEGA.
We intend for the public to be able to utilize centralized on-line resources to understand the full range of our energy efficiency efforts. This use requires on-line information regarding program elements, best practices and lessons learned. The utilization we envision also requires technological changes and applications to facilitate access to third-party programs, utility contracting procedures, innovative and pilot programs, and new outreach opportunities. We direct staff to work with the utilities to develop an Energy Efficiency Web Portal (EE Web Portal) that provides one integrated point of access to a multitude of energy efficiency information.64 The web portal will be a user-centered, interactive resource that allows users to easily navigate multiple points of data, applications, and information systems. We will combine or link this web portal with other websites, including, but not limited to the utilities' websites and other government agencies.65
The utilities have also developed an Energy Efficiency Best Practices database and website.66 To remain useful, the database must be updated periodically with information on new programs, end use technologies, and implementation strategies. Originally developed for a primary audience of program evaluators, the website and database can be improved for broader usefulness to program designers, implementation practitioners, and marketers. This data base, like the EEGA, should be updated on a continuing basis and integrated with our EE Web Portal. We direct Energy Division and utilities to ensure the necessary updating and integration occurs.
Many parties urge the Commission to become more proactive in overseeing and assisting in the ME&O efforts, both at a leadership level and in assisting collaboration among stakeholders. We agree. We will convene an ME&O Task Force to assist in the development of the Strategic Plan, the utilities' portfolio plan applications, and the EE Web Portal. The Task Force should also explore DRA's suggestion of developing a recognizable and trusted brand for California energy efficiency products and services.
5.2. Training
Parties' Comments. Numerous parties raised the lack of adequately trained energy efficiency professionals, including planners, contractors, and local government building code officials, as significant barriers to accomplishment of California's energy efficiency goals. This theme recurs for all sectors and activities -- planning, EM&V, code enforcement, new construction, HVAC, industrial programs, etc.
For example, Heller Manus pointed out that education is the key to encouraging efficiency as standard practice for commercial new construction.67 They offer detailed recommendations for four efficiency education targets: 1) building industry clients and users must understand efficiency economics and environmental benefits (e.g. via business and law schools, real estate licensing, building owner and manager certification, and associated continuing education mechanisms); 2) college level and continuing education licensing requirements of building design architects and engineers, with special attention to energy modeling and feedback on actual building performance; 3) secondary education, contractor license requirements, and continuing education for contractors; and 4) staff training and professional accreditations of local government building and planning officials. SCE and SDG&E/SoCalGas cite similar needs. SCE specifically calls for the Commission to "value knowledge transfer, technical assistance, and design assistance activities."68
To achieve residential new construction efficiency potential, SCE cites the greatest barrier as the slow pace of technological advancement and production builders' use of integrated design principles. SCE advocates activities to identify and transfer knowledge regarding best practice designs and equipment selection by climate zone. PG&E calls for state agencies to undertake education and improved understanding of building practices.
The parties agree that the HVAC industry needs considerable career education and design/installation training. On the career front, Better Buildings Inc. (Better Buildings) describes the labor shortage in the HVAC industry as "beyond critical," and states that "without ... a more attractive career for younger workers there will simply not be enough qualified people to do the work"69 It urges training of HVAC sales personnel on energy efficiency equipment, system, and maintenance solutions. PG&E, SCE, SDG&E/SoCalGas, and TURN agree that the greatest barrier to HVAC performance is the lack of training for contractors and other skilled technicians. SCE and SDG&E/SoCalGas also would target dealers and end-use customers regarding quality installation. PG&E, TURN, and SDG&E/SoCalGas would target building inspectors regarding code compliance. PG&E further advocates contractor training as a condition of license renewal.
Discussion. Without adequate numbers of trained personnel working in the various fields of energy efficiency, California will not succeed in achieving its goals. Training is necessary not only to support our energy efficiency goals, but to provide hundreds if not thousands of jobs in the state. California must quickly increase statewide efforts to train people at all levels to plan, administer, and deliver energy efficiency, both in the public and private sectors. This effort will require concerted planning among secondary and post-secondary educational leaders, technical and professional organizations, state agencies, economic and labor development organizations, utilities, and construction and manufacturing businesses that deliver energy efficiency solutions. We expect such an effort will require a wide variety of initiatives and seek multiple funding sources, not just ratepayer funds.
We direct the utilities to expand their on-going efforts for a coordinated, comprehensive, expedited approach to training, utilizing partnerships with related private and public efforts. Specifically, we direct the utilities to include a training section in the Strategic Plan and the 2008 portfolio plan applications and to work with stakeholders to develop specific training strategies for applicable sectors or markets. We expect that ratepayer funds can be combined with other funding sources to fill this essential need.
We see this potential labor shortfall and increasing demand for skilled workers as an opportunity to include segments of society that would not traditionally have access to this new energy economy. For example, minority, low-income, and other disadvantaged communities could benefit greatly from targeted outreach and training efforts that teach these communities the skills they need to succeed at these critical jobs. Such focused training efforts can create entrepreneurial, wealth-building opportunities that build economic advancement for these communities. We direct the utilities to include specific training strategies for reaching minority, low-income, and other disadvantaged communities in their Strategic Plan. We expect utilities to develop strategies in collaboration with stakeholders from these communities.
5.3. ME&O EM&V Studies and Follow-up
The Commission has an obligation to ensure that ratepayer dollars spent on ME&O programs are used wisely to achieve maximum results in energy savings and increased public awareness. Lack of data on the effectiveness of past programs hampers our efforts to develop clear guidance to the utilities on the ME&O portion of the Strategic Plan and 2009-2011 portfolios.
In D.05-04-051, we established a performance basis for ME&O programs that includes "any direct energy savings impacts attributable to the activity."70 D.05-04-051 also clarifies the counting of non-resource programs, including ME&O, towards our goals and requires that the EM&V efforts include recommendations to improve program performance. These recommendations are to be structured to provide both early feedback to program implementers and to the planning process for the next program cycle.71 The Commission's EM&V studies on the ME&O programs are expected to be completed by July 2008 for the process evaluation and January 2010 for the indirect impact evaluation.
The Energy Division staff and their contractors will be engaged in an early feedback process that can inform the development, administration, implementation and budgets of the 2009-2011 portfolios. If the feedback demonstrates serious weaknesses with the current ME&O programs, we will consider a change in direction, including soliciting third-party bids for the administration and implementation of all or part of the programs or working with a non-profit organization, as recommended by TURN. The assigned Commissioner may issue further direction to the utilities on the planning, content and process for ME&O programs consistent with the findings of the EM&V study and this decision.
55 This number aggregates ratepayer funding for ME&O for all customer demand-side programs (energy efficiency, demand response, low income, and the California Solar Initiative).
56 D.05-09-043 authorized 2006-2008 energy efficiency portfolio plans and funding levels, including program areas covering statewide marketing, education centers, third-party, and local government partnerships.
57 D.06-12-036, D.06-12-038, D.05-12-026.
58 D.06-03-024.
59 D.07-05-047.
60 D.06-07-027 approved approximately $72 million for PG&E's AMI ME&O, D.07-04-043 approved approximately $38 million for SDG&E's AMI ME&O, A.07-07-026 includes approximately $70 million for SCE's proposed AMI ME&O.
61 D.05-01-055, p. 131.
62 http://eega2006.cpuc.ca.gov.
63 D.05-01-055, p. 132.
64 We envision a much expanded portal that is comprehensive, interactive, and user-friendly.
65 Commission staff should work with the utilities to develop a budget for the EE Web Portal for the 2008 portfolio plan applications. Commission staff, or its contractor, will perform the work to maintain and expand EE Web Portal. We authorize the assigned Commissioner to provide direction as needed for pre-2009 development of the EE Web Portal and direct utilities to provide early development funding from existing budgets.
66 See: http://www.eebestpractices.com/.
67 This mirrors discussion at the June 5-6, 2007 Commercial New Construction workshop, where experts indicated that now "1 in 1000 buildings is `high-performing' " (defined as 50% better than minimum standard. Further there was general agreement that there are not sufficient "knowledge-holders" of energy efficient design and design/build integration to apply this approach on a wide scale. This workshop discussion revealed a need for more engineers and architects in the field - both via more "seats" in college and university architecture and engineering schools, and greater retention of such graduates in the building design field.
68 May 29, 2007, SCE Comments, p. 5.
69 July 10, p. 8. Better Building Inc., Comments.
70 D.05-04-051, p. 60.
71 D.05-04-051, p. 65.
