V. Procedural Matters

This proceeding is assigned to Commissioner Susan P. Kennedy and Administrative Law Judge Kim Malcolm.

Findings of Fact

1. Granting EE program funding for a two-year cycle during 2004-05 will promote program continuity and stability.

2. Many third parties who receive EE program funding for 2002-2003 programs have not had adequate time to implement their programs because of initial delays in funding. Granting third parties an additional extension through June 2004 to implement their programs could compensate for the previous delay.

3. Pub. Util. Code §§ 381 and 890, and AB 117 articulate state policy to promote EE programs that are cost-effective.

Conclusions of Law

1. AB 117 requires the Commission to consider proposals for EE program funding from all types of entities and to judge those proposals on the basis of cost-effectiveness and other public policy objectives.

2. The Executive Director should have authority to approve or deny program extensions through 2004 proposed by third parties implementing EE programs funded for 2002-03.

3. If the utilities and efficiency parternship propose two-year extensions to existing EE programs, they should be required to demonstrate that those programs meet adopted evaluation criteria on the same basis as any other party proposing program funding for 2004-05.

4. In light of the language in AB 117 and Section 381 articulating the need for EE programs that are cost-effective, it is reasonable to accord significant weight to those programs proposals that demonstrate cost-effectiveness.

5. Parties should apply for EE program funding for 2004-05 according to the schedule and procedures set forth herein and posted at the Commission's website, www.cpuc.ca.gov.

INTERIM ORDER

IT IS ORDERED that:

1. The policies for applying for 2004-05 energy efficiency (EE) program funding are set forth herein. The Executive Director is hereby authorized to provide detailed information about applying for 2004-05 EE program funding on the Commission's website, consistent with the practices and policies set forth herein.

2. Non-utility parties wishing to apply for 2004-05 EE program funding must do so no later than September 23, 2003, and consistent with this order and the procedures provided at the Commission's website.

3. Utilities shall submit their program plans for 2004-095 EE program funding by September 23, 2003 consistent with this order.

4. This decision adopts the 2004-05 program selection criteria as set forth herein.

5. The Commission hereby delegates authority to the Executive Director to grant or deny requests by parties implementing 2002-03 EE programs to extend the time to implement those programs to June 30, 2004, as set forth herein.

Dated _____________________, at San Francisco, California.

Statewide Programs

Statewide programs are those that are uniform, with consistent terms and requirements, throughout all utilities' service territories. These consistent terms should include identical application procedures, financial incentives, and other program implementation details.

(1) Statewide Residential Retrofit

This program category targets energy savings in existing single-family and multi-family residential homes. Programs may include a full range of services, such as information, outreach, training, audits, and direct incentives for energy-efficient technologies. Alternatively, they may include one or more of these service elements.

This program would provide rebates for purchases of the following technologies, individually, or in any combination:

(2) Comprehensive Residential Retrofits

This program includes installation of building shell EE measures, and other comprehensive treatments, including, but not limited to:

This program promotes refrigerator, freezer, and room air-conditioner recycling. Any appliance retirement program should offer comprehensive toxic material recycling and disposal in conformance with California environmental laws and regulations and permitting requirements.

(3) Statewide Residential New Construction

Proposals for new statewide residential new construction programs should set a benchmark above the current June 2001 Title 24 building code standards. Parties' proposals should incorporate the California Energy Commission's proposed code revisions in 2005. Because Title 24 standards exceed federal standards, the Energy Star Homes label itself may not be appropriate for a California residential new construction program, though the general approach may be. Parties should target a benchmark lower than Title 24 energy use levels.

(1) Statewide Nonresidential Retrofit

This program category promotes retrofits in all commercial building sectors. Programs may emphasize technical support, capacity-building, emerging technology demonstration, and quality assurance. Some examples of such programs are as follows.

Among the programs for large and medium nonresidential sectors are the Standard Performance Contract (SPC) program, customized rebates, and demand-side bidding programs. These programs offer incentives on the basis of verified energy savings, rather than by prescribing replacement of specific equipment.

Customer rebates could be offered for the following technologies or others:

    1. T8 and/or T5 lamps

    2. Electronic ballasts

    3. Lighting controls such as photocell controllers and occupancy sensors

    4. Compact Fluorescent Lamps (CFLs)

    5. High-efficiency motors,

    6. Heating, Ventilation, and Air conditioning (HVAC) measures.

Building operator certification and training programs would educate operators of large and medium commercial buildings, including public buildings, on short- and long-term peak demand and energy savings strategies for their buildings. After participating in training activities, individual building operators could become certified in efficient building operation.

(2) Statewide Nonresidential New Construction

Statewide nonresidential new construction programs should set a new benchmark above the Title 24 building code in consultation with the California Energy Commission and should support CEC's proposed 2005 code revisions. This type of program emphasizes incentives to incorporate energy savings measures during the design process rather than specifying applicable technologies.

A cross-cutting program may target both residential and non-residential customers or may support other programs in either retrofit or new construction markets. The following are examples of the types of programs.

(1) Statewide Marketing and Outreach

Statewide marketing and outreach programs may include information campaigns capitalizing on the success of the state's Flex Your Power campaign and advertise statewide programs offered across utility service territories. In addition, such programs may include upstream marketing and outreach to manufacturers and retailers.

(2) Upstream Appliance, Lighting and HVAC
Rebates

By coordinating with manufacturers and distributors, upstream programs ensure that high-efficiency technologies are available in stores for purchase by residential and business consumers. Programs could include the following technologies (or others):

2. Local Programs

Local programs may respond to local customer needs and take advantage of local relationships to increase participation.

Proposals may offer comprehensive outreach, financing, technical support, contractor facilitation and outreach, as well as quality assurance.

Local programs may building on local relationships and networks to reach nonresidential customers. They may emphasize technical support, outreach, contractor referral and oversight, bulk procurement, financing, and quality assurance. Eligible EE measures should include high-efficiency lighting, HVAC, and refrigeration.

They may also promote EE in the industrial and agricultural sectors of the state. Proposals should emphasize technical support, financing, education and training/capability-building, and strong measurement and verification plans.

Local cross-cutting programs may target multiple sectors and/or both retrofit applications and new construction.

(1) Education/Training/Outreach

This program provides education, training and outreach in local communities. Such programs may build infrastructure and strengthen institutions in order to expand the capability for EE delivery. They may be targeted to community-based organizations.

(2) Building Codes and Standards Support

This program supports local efforts to inform and train builders, developers, building officials, and tradespersons on code and standards revisions.

(END OF ATTACHMENT 1)

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