2. Background

The 2005 Commission and California Energy Commission's (CEC) Energy Action Plan II, declared: "[The] goal is for California's energy to be adequate, affordable, technologically advanced, and environmentally-sound...[C]ost effective energy efficiency is the resource of first choice for meeting California's energy needs. Energy efficiency is the least cost, most reliable, and most environmentally sensitive resource, and minimizes our contribution to climate change."2

Pub. Util. Code § 454.5(b)(9)(C) requires utilities to first meet their "unmet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible." With three decades of leadership and innovation in the public and private sectors, California leads the nation and perhaps the world in developing and implementing successful energy efficiency efforts. As the CEC notes in its 2007 Integrated Energy Policy Report (IEPR): "Energy efficiency, which helped to flatten the state's per capita electricity use, will continue to be the keystone of California's energy strategy. California's building and appliance standards have saved consumers more than $56 billion in electricity and natural gas costs since 1978 and averted building 15 large power plants. It is estimated the current standards will save an additional $23 billion by 2013."3

In Decision (D.) 07-10-032 (our Interim Opinion on issues relating to future savings goals and program planning for 2009-2011 energy efficiency and beyond), we required the utilities to create an energy efficiency strategic plan, with the assistance of Commission staff and consultants as necessary. D.07-10-032 envisioned the Plan would include, at a minimum, the following major items:

o Long-Term Guidance Through 2020;

o Demand-Side Integration Strategies;

o Market Transformation;

o Programmatic Initiatives/Big, Bold Energy Efficiency Strategies (BBEES);

o Best Practices, Portfolio Diversity, and Innovation;

o Local Government Roles; and

o Low-Income Energy Efficiency.

D.07-10-032, Ordering Paragraph 5, required the final proposed strategic plan to include:

An outline of the strategies underlying design and implementation of 2009-2011 energy efficiency programs, as described in this order and with specific attention to residential new construction, commercial new construction and heating/ventilation/air conditioning programs; an outline of activities and milestones for implementing energy efficiency programs and strategies through 2020, as discussed in this order, and consistent with the Energy Efficiency Policy Manual and the policies and objectives set forth in this order. The strategic plan shall include proposals for industrial energy efficiency programs as set forth herein. In addition, the final proposed strategic plan shall include a list of all major comments received on the draft plan, and the utilities' response as to the disposition of each.

D.07-10-032 also stated that the strategic plan should reflect a balance between long-range strategies to achieve all cost-effective energy efficiency, and specific actions to achieve near-term savings goals. The strategic plan was to identify, at least generally, the program areas and associated strategic implementation activities needed through 2020 to achieve our goal of implementing all cost-effective energy efficiency. The strategic plan also was to identify specific activities and implementation milestones to carry out in the 2009-2011 program cycle, both by utilities and by other players participating in the strategic plan's preparation.

In D.07-10-032, we provided that the process for developing the strategic plan should be inclusive and promote a broad exchange of ideas and analysis. We were particularly interested in the participation of governmental stakeholders beyond our jurisdictions, including publicly-owned utilities and local governments, as well as regional energy efficiency entities such as the Northwest Energy Efficiency Alliance. We directed our staff to ensure a broad set of stakeholders would be invited to participate in this process, stretching beyond those organizations typically seen in Commission proceedings, and invited the continued collaboration with CEC staff.

The utilities served a draft of their California Energy Efficiency Strategic Plan on the Commission staff and all parties to Rulemaking (R.) 06-04-010 on February 8, 2008.4 Pursuant to a Ruling5 a supplement was filed on March 6, 2008. In addition, the investor-owned utilities (IOUs) established a joint California Energy Efficiency Strategic Planning web portal (www.californiaenergyefficiency.com) where the utilities posted all strategic planning working meeting agendas, key reference documents and work products, draft plan and all written stakeholder comments received on the plan.

2 "Energy Action Plan II, Implementation Roadmap for Energy Policies," California Energy Commission and California Public Utilities Commission, September 21, 2005.

3 California Energy Commission, 2007 Integrated Energy Policy Report (2007 IEPR), adopted December 5, 2007, Energy Commission-100-2007-008-CMF.

4 D.07-10-032, OPs 1 and 2, required the joint utility Energy Efficiency Strategic Plan to be filed February 1, 2008. An assigned Commissioner's Ruling dated January 31, 2008 extended this deadline to February 8, 2008.

5 Assigned Commissioner's and Administrative Law Judge's Ruling Requiring Supplement of Preliminary Energy Efficiency Strategic Plan, dated February 15, 2008.

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