III. Background

D.03-08-067 solicited energy efficiency program proposals from utilities, government agencies, companies, and non-profit organizations and set forth several parameters for that solicitation. That order addressed programs that would be funded through the public goods charge or "PGC." Among other things, that order stated our intent to:

· Allocate approximately 70% of PGC funding to statewide utility programs, 10% to statewide marketing and outreach and evaluation, measurement and verification and 20% to programs proposed by entities other than utilities, and determine final allocations depending on program proposals.

· Award funding to entities and programs that are most likely to fulfill established energy savings and public policy goals, and program evaluation criteria;

· Permit utilities to submit proposals to continue to administer their current program offerings for two years as long as they were demonstrated to satisfy Commission criteria for evaluating energy efficiency programs;

· Modify program selection criteria for 2004-05 to include cost-effectiveness, long-term annual energy savings, equity, ability to overcome market barriers, ability to reduce peak demand, innovation, coordination with other programs, and demonstrated success in implementation of energy efficiency programs.

We retain the distinctions we have developed in recent years for various types of programs. "Statewide" energy efficiency programs are those that are offered uniformly by the utilities and are designed to promote customer participation on a broader basis. In addition, statewide marketing and outreach programs are designed to coordinate government-sponsored activities with private sector stakeholders including manufacturers and retail sellers of energy efficiency products and services, business and residential building managers, commercial and industrial program managers, and non-governmental organizations. D.03-08-067 expanded the types of organizations that may implement statewide proposals to include government agencies, non-profit organizations and non-utility firms. "Local" programs are those that are narrower in scope, tailored to specific geographic areas or hard to reach customer groups.

D.03-08-067 directed parties who wished to apply for energy efficiency program funding to submit proposals according to a standard format. It described our process for review and stated our intent to issue an order in this docket approving those programs most likely to fulfill explicit policy objectives.