ALJ/SRT/k47 Mailed 12/3/2001

Decision 01-11-066 November 29, 2001

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Examine the Commission's Future Energy Efficiency Policies, Administration and Programs.

Rulemaking 01-08-028 (Filed August 23, 2001)

INTERIM OPINION ADOPTING
ENERGY EFFICIENCY POLICY RULES

TABLE OF CONTENTS

Title Page

INTERIM OPINION ADOPTING ENERGY EFFICIENCY POLICY RULES 1

I. Summary 2

II. Background 3

III. Discussion 3

A. Introduction 3

B. Overview of Criteria and Policy Rules 4

1. Long-Term Annual Energy (Gas and Electric) Savings 5

2. Cost Effectiveness 5

3. Addressing Market Failures or Barriers 5

4. Equity Considerations 6

5. Electric Peak Demand Savings 6

6. Innovation 7

7. Synergies and Coordination With Programs Run by Other Entities 7

C. Expected 2002 Program Mix/Categories 7

1. Statewide Programs 8

a. Statewide Residential Programs 10

(1) Statewide Residential Retrofit 10

(a) Downstream Appliance, Lighting & HVAC Rebates 10

(b) Comprehensive Residential Retrofits 11

(c) Appliance Retirement and Recycling 11

(2) Statewide Residential New Construction 11

b. Statewide Nonresidential Programs 12

(1) Statewide Nonresidential Retrofit 12

(a) Large and Medium Nonresidential Customized
Program 12

(b) Small Business Rebates 13

(c) Building Operator Certification and Training 13

(2) Statewide Nonresidential New Construction 14

c. Statewide Cross-Cutting Programs 14

(1) Statewide Marketing and Outreach 14

(2) Upstream Appliance, Lighting & HVAC Rebates 15

2. Local Programs 15

a. Local Residential Programs 17

b. Local Nonresidential Programs 17

c. Local Cross-Cutting Programs 18

(1) Education/Training/Outreach 18

(2) Building Codes and Standards Support 18

3. Statewide Market Assessment and Evaluation Activities 18

a. Evaluation, Measurement & Verification Master Contract 19

b. Statewide Energy Efficiency Potential and Current Saturation Study 20

c. Best Practices Analysis for All Sectors 21

d. Development of Deemed Savings Values 22

D. Process for Submission and Selection of Proposals 22

1. Proposal Preparation and Submission 22

2. Proposal Selection 25

E. Process Once Proposals Are Selected 27

IV. Comments on Draft Decision 30

Findings of Fact 35

Conclusions of Law 35

INTERIM ORDER 35

Attachment 1 - Energy Efficiency Policy Manual

Attachment 2 - Electronic Service Protocol

I.