II. Summary

This interim decision adopts new energy efficiency policy rules and sets forth the criteria parties should use in applying for energy efficiency funding for program year (PY) 2002 and in some cases 2003. In response to the comments on the original draft decision, we opt here for a phased-in approach that has the utilities submitting proposals for all statewide program funding, except statewide marketing/outreach program funding. Marketing/outreach funding will be open to third party proposals on an equal footing. The utilities may also seek up to 35% of the 2002 funding allocated for local energy efficiency programs. The utilities shall submit their PY 2002 program proposals for Commission approval no later than December 14, 2001.

The Commission will set aside $100 million of the Public Goods Charge (PGC) gas and electric funds available in 2002 and 2003 for non-utility programs. This constitutes approximately 20% of the overall 2002 budget for energy efficiency programs, and approximately 65% of the funding for local programs. In addition, third parties (but not utilities) may apply for a second year of funding - during PY 2003 - for programs they wish to run until December 31, 2003.

Interested non-utility parties may submit proposals for local programs and for statewide marketing/outreach on energy efficiency. The statewide marketing/outreach proposals are due on December 14, 2001, while those involving local programs may be submitted at any time after that date, but no later than January 15, 2002. Funding for the non-utility programs will cover the period 2002 through 2003.