January 2011 Update - California Energy Commission - State of ...

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January 2011 Update - California Energy Commission - State of ...

kWh/personSource: A. Rosenfeld; CEC 2006“Energy efficiency, which helped to flatten thestate’s per capita electricity use, will continue tobe the keystone of California’s energy strategy.California’s building and appliance standardshave saved consumers more than $56 billion inelectricity and natural gas costs since 1978 andaverted building 15 large power plants. It isestimated the current standards will save anadditional $23 billion by 2013.”United StatesCaliforniaadopted loading order; aggressive goals setbased upon up-to-date potential studies;decoupling of sales from revenues for electricand gas utilities; performance-based incentivemechanisms; and a robust dual funding streamcomprised of a public goods charge andprocurement funding.The IOUs‘ 2006-2008 energy efficiency portfoliomarks the single-largest energy efficiencycampaign in U.S. history, with a $2 billioninvestment by California‘s energy ratepayers. Inaddition, individual and corporate energyconsumers; state and local agencies; andpublicly-owned utilities continue to makesignificant independent investments to increasethe efficient use of energy across California.Over the years, successive CPUC decisionshave created a policy framework to motivateIOUs to develop and continuously expandenergy efficiency programs on behalf of theircustomers. This policy framework is composedof a number of elements including: the state‘sHowever, with a growing population, increasingdemand for energy, and the pressing need toreduce greenhouse gas (GHG) emissions in arapid and low-cost manner, there has neverbeen a more important time for energy efficiencyin California. California is the second-largestGHG-emitting state in the U.S. and electricityproduction is the second largest source ofcarbon emissions in California, accounting forsome 32 percent of its total, with gas use inbusinesses and homes another 9 percent. 7An Enabling Policy FrameworkCalifornia’s success to date has been enabled by a comprehensive policy framework supportingenergy efficiency investment. The aggressive scale-up envisioned by this Plan hinges on asteady foundation composed of the following elements:• Clear Policy Direction. The Energy Action Plan sets forth a bold policy vision establishingefficiency as the California‘s first priority energy resource. Specific savings goals, tied to supplyprocurement, implement that policy.• Adequate Financial Incentives and Funding. The decoupling of sales from revenues forelectric and gas utilities, along-side performance-based incentive mechanisms, address afundamental bias against efficiency investment. Meanwhile, a public goods charge andprocurement funding produce substantial funding resources for such investment.• Robust Program Administration and Oversight. In California, efficiency programs are largelyadministered by utilities utilizing universal contact with homes and businesses throughout thestate, while government maintains primary responsibility for program direction and oversight,including program evaluation and the measurement and verification of claimed energy savings.• Firm Ratcheting Standards. The establishment of minimum efficiency standards for buildingsand appliances that are updated on a regular basis have driven guaranteed progressive energysavings over the past three decades.INTRODUCTION SECTION I – PAGE 2


Meanwhile California demand for electricity andnatural gas continues to grow, with statewideelectricity consumption forecast to increase anaverage of 1.25 percent per year over the nextdecade. 8 In addition, the state faces rapidlyescalatingfuel prices.The combination of these pressures posessignificant economic and social risks toCalifornia. As both an emissions-free and lowcostenergy resource alternative, energyefficiency is uniquely-poised to play a centralrole in reconciling the current challenge. Thisfact is acknowledged in virtually everydiscussion of GHG abatement opportunities,including McKinsey & Company‘scomprehensive 2007 review. 9Capitalizing on this opportunity in California willrequire that we make energy efficiency1.2 POLICY CONTEXTThe passage of the California Global WarmingSolutions Act of 2006 (Assembly Bill 32) 10 hasamplified the need for intensive energyefficiency efforts across California. TheCalifornia Air Resources Board‘s (CARB) DraftScoping Plan for Assembly Bill (AB) 32implementation states that while ―California hasa long history of success in implementingregulations and programs to encourage energyefficiency… [it] will need to greatly expand thoseefforts to meet our greenhouse gas emissionreduction goals.‖ 11The Draft Scoping Plan, which offers preliminaryindication of how the state plans to achieve itsGHG reduction targets, establishes a statewideenergy efficiency target of at least 32,000gigawatt hours and 800 million therms by2020. 12 If achieved, emission reductions fromthese efficiency savings would result in over 25million metric tons of GHG emissions reductions,making them the second largest component inthe state‘s overall emissions reduction program.The Draft Scoping Plan recognizes this, statingthat efficiency provides an emission reductionopportunity for California ―on a scale secondonly to the Pavley regulations.‖ 13AB 32 and other pivotal legislation and policy inCalifornia — such as the Energy Action Plan II,AB 2021 (establishment of statewide energyinvestments an integral part of life and a―business as usual‖ choice for California marketactors.It will require that we overcome market barriersthat have persisted over the course ofCalifornia‘s 30-year history with energyefficiency policy, and it will demand the politicalwill to continue making investments during timesof economic stress to extend and to capture thefull extent of energy efficiency potentialobtainable across the state. However, insucceeding, this initiative will bring benefits notonly for California but will allow the state toshare its energy efficiency leadership, skills andexperience in the national and internationalefforts to combat global warming through energyefficiency.efficiency goals), the Low-Income EnergyEfficiency statutes, the Governor‘s GreenBuilding Executive Order 14 , and the 2007 IEPR— create an environment where energyefficiency efforts must not only continue to thrivebut scale up unprecedented levels.In July 2008, the CPUC redoubled its ownenergy savings efforts by establishing newtargets for energy savings for the years 2012through 2020 for its regulated utilities. 15 WithinIOU service areas these goals are expected tosave over 4,500 megawatts, the equivalent ofover 9 major power plants, and over 16,000GWh of electricity savings and 620 milliontherms. Combined with recent goal-setting bythe state‘s publicly-owned utilities under AB2021, these goals provide an aggressivecontribution to statewide energy savingstargeted under AB 32.A number of recent policies, such as AB 1109,which requires defined reductions in energyusage for lighting, and the Federal EnergyIndependence and Security Act of 2007, whichcontains many provisions for new minimumefficiency standards and research, havedramatically altered the landscape for energyefficiency activities in California. 16 Ensuring thecontinued effectiveness of public purposeefficiency programs, for instance, will requireINTRODUCTION SECTION I – PAGE 3


careful coordination with emerging mandatesand market changes.This Plan provides a strategic roadmap forintegrating energy efficiency efforts to achieve theaggressive goals the state has set for itself. It aimsto bring together key participants beyond theCPUC and the IOUs, including publicly-ownedutilities, the financial and building industries, citiesand counties, other state agencies, andbusinesses and consumers, to work togethertoward common energy efficiency goals.Therefore, the strategies and goals are notrestricted by geographical, jurisdictional,regulatory, or political boundaries. To achievethese goals, all actors must work collaborativelyover the long-term to fundamentally transform theway Californians use energy at home and at work.1.3 TARGETING MARKET TRANSFORMATIONThe CPUC‘s October 2007 decision (D.07-10-032) directed that ―a key element of theStrategic Plan would be that it articulates howenergy efficiency programs are or will bedesigned with the goal of transitioning to eitherthe marketplace without ratepayer subsidies, orcodes and standards.‖ 17The CPUC also stated that the Plan wouldincorporate the market transformation goaldescribed above and ―develop milestones tomeasure progress towards that goal,‖ includingthe development of a ―targeted timeframe forsuch market transition and the process fortracking progress so that it is clear at what pointa program has made a successful transition orconversely, is having problems.‖ 18This Plan fulfills the Commission‘s goal byemploying market transformation as its unifyingobjective. The Plan seeks to effect substantialand sustained progress towards more efficienttechnologies and practices in each of thecustomer end use sectors (e.g., Commercial,Industrial, Residential, Agricultural). Likewise,the Plan describes the market transformationefforts necessary in each of the cross-cuttingareas discussed (e.g., Codes and Standards,Workforce Education and Training, MarketingEducation and Outreach, and Research andTechnology)As early as 1998, the Commission definedmarket transformation as:“Long-lasting sustainable changes in thestructure or functioning of a market achieved byreducing barriers to the adoption of energyefficiency measures to the point where furtherpublicly-funded intervention is no longerappropriate in that specific market.” 19In theory, ratepayer-funded efficiency programsover the past thirty years have been designedeither to encourage suppliers and manufacturersto sell efficiency products or services to ―push‖the market, or to encourage consumers to buythese products or services to ―pull‖ the market.Typical utility rebate programs aim to increasethe market penetration of energy-efficientproducts along a continuum until marketacceptance reached sufficient levels for themeasure to be incorporated into codes andstandards or used in the marketplace withoutratepayer subsidies.In practice, however, utility programs inCalifornia have naturally tended towardsmeasures which produce readily-quantified, lowcost,near-term savings which offer theopportunity to ―buy‖ load reduction in easy, wellpackagedmeasures with limited market impacts.There has been little incentive for utilities toengage in measures with a longer-termorientation – those very measures whichproduce meaningful market transformation.This Plan seeks to move utilities, the CPUC, andother stakeholders beyond a focus on short-termenergy efficiency activities into a more sustainedlong-term, market transformation strategic focus.By re-emphasizing the market transformationgoal, we do not discount the benefits of shorttermmeasures for energy savings. Utilityportfolios must contain an appropriate mix ofshort and longer term energy savings. However,short-term programs such as the replacement ofincandescent light bulbs with compactfluorescent light bulbs must be accompanied bysolutions which focus on multi-year and holisticlighting system strategies, improvedconservation actions, and other means ofmarket transformation.Additionally, the Plan recognizes that theprocess of market transformation cannot andINTRODUCTION SECTION I – PAGE 4


should not be driven by ratepayer-funded utilityprograms alone. While utilities will play acontinued role in stimulating markettransformation across sectors, each of thecross-cutting areas described in this Planrepresents an avenue where non-utility actorsmay well be better positioned to drive the ―push‖of new technologies to market, or the ―pull‖ forcustomers and business to adopt availableefficiency technologies or practices.Transformation is an evolutionary process, asmarkets for a given end-use are not transformedjust once, but continuously. Understandingwhen a technology promoted in utility programshas become established within the mainstreammarket or incorporated into codes and standardswill help target when new programs are neededto encourage the next generation of energyefficiency technologies. Decision 07-10-032recognized this in directing the utilities‘ proposed2009-2011 portfolios to identify ―an ‗end game‘for each technology or practice that transformsbuilding, purchasing, and the use decisions tobecome either ‗standard practice‘, orincorporated into minimum codes andstandards.‖ 20It is necessary to develop appropriate rules,metrics, and guidelines for determining whenmarket-transformation has occurred andpublicly-funded intervention is no longerappropriate, so as to define an end-point forstrategies and set the course for new programsand goals. A key priority for the first update ofthis Plan will be the development of end-pointdefinitions, rules, and progress metrics. ThePlan‘s content, however, is oriented towardscharting a programmatic course that embracesthe goals and strategies of market transformationby seeking to achieve significanttransformative progress in all sectors by 2020 orearlier. 21The CPUC also recognizes its responsibility toexamine changes to the policy rules on countingsavings from IOU programs to attribute gainsfrom market transformation and long-termstrategies resulting from IOU actions. In order toensure utilities are motivated to devote portfoliodollars towards market transformationmeasures, associated savings must be fairlyaccounted for in attribution methodologies.Policy Tools for Market TransformationThe market transformation strategies covered in the Plan are built upon one or more of the followingpolicy tools employed to “push” or “pull” more efficient products or practices to market:• Customer Incentives including rebates; innovative or discounted financing; and/or non-financialsupport to consumers are the ―carrots‖ that help pull consumers into choosing the efficientoption.• Codes and Standards which mandate minimum efficiency thresholds for buildings, appliancesand/or equipment, removing the less efficient choices from the marketplace are the ―sticks‖ thatpush builders and manufacturers to provide efficient goods and services.• Education and Information through marketing, education and outreach inform market actorsabout energy efficiency opportunities. These programs often include labeling; benchmarking;internet-based comparisons; professional and trade materials; school curricula; peer-to-peerexchanges; and other resources.• Technical Assistance helps to ensure that knowledge barriers on the part of customers,installers or retailers are not unnecessarily hampering the progress of critical efficiencyinitiatives.• Emerging Technologies rely on research, development, demonstration and/or deployment tomove energy-efficient products and developments from the laboratory into the commercialmarketplace.INTRODUCTION SECTION I – PAGE 5


1.4 STRATEGIC PLANNING PROCESSDecision 07-10-032 outlined the key goals,content, and development process for this Plan.During November and December 2007 andJanuary 2008, working groups for four ―vertical‖market sectors — residential, including lowincome,commercial, industrial, and agricultural— and seven cross-cutting areas — Heating,Ventilation and Air Conditioning (HVAC)systems; Demand Side Management (DSM)Coordination and Integration; WorkforceEducation and Training (WET); MarketingEducation and Outreach (ME&O); Research andTechnology; Codes and Standards; and LocalGovernments — held 36 public stakeholderworkshops.The objective of these workshops was tofacilitate information exchange and develop anaction plan for each market sector and eachcross-cutting sector. In January 2008, theseplans (―Convener Reports‖) were provided to theIOUs to inform their strategic planning efforts.Throughout this process, the CPUC acted as acentralized information hub via a specially builtwebportal, disseminating team updates andreports and providing models for teams to lookto in recording their findings.As required by the CPUC, the IOUs filed a draftPlan on February 8, 2008. On March 6, 2008,the IOUs filed a revised draft Plan,supplementing the February draft pursuant toCommission direction. Three stakeholderworkshops were then held in San Diego, LosAngeles, and San Francisco. 22All public comments, workshop transcripts, IOUand CPUC staff materials, and convener reportshave been archived and are available on thestrategic planning website:www.californiaenergyefficiency.com.“BIG BOLD” ENERGY EFFICIENCY STRATEGIESIn order to guide market transformation in a number of key sectors, this Plan embraces four specificprogrammatic goals, known as the “Big Bold Energy Efficiency Strategies” (BBEES), established by theCPUC in D.07-10-032 and D.07-12-051.These goals were selected not only for their potential impact, butalso for their easy comprehension and their ability to galvanize market players.1. All new residential construction in California will be zero net energy by 2020;2. All new commercial construction in California will be zero net energy by 2030;3. Heating, Ventilation and Air Conditioning (HVAC) will be transformed to ensure that its energyperformance is optimal for California‘s climate; and4. All eligible low-income customers will be given the opportunity to participate in the low income energyefficiency program by 2020.INTRODUCTION SECTION I – PAGE 6


1.5 LIMITATIONS OF THIS FIRST PLANTwo limitations to this 2008 Plan should be noted:1. Because it is the initial plan—and due to timeand other constraints—this Plan has notundergone cost-benefit analysis. However,the efficiency activities envisioned in thisPlan subject to the Commission‘s jurisdictionwill only be funded by ratepayers as part ofcost-effective portfolios. Similarly, thestrategies and actions have not been fullyevaluated for prioritization or for budget andresource-allocation decisions. Accordingly,the strategies and actions described in thisPlan will be updated as conditions changeand new experience and information isobtained.2. This Plan does not specifically address threeimportant elements of energy efficiency.These are the evaluation and measurementand verification of energy savings;transportation; and the water-energy ―nexus.‖The reasons for these exclusions are twofold:first, there was no specific inputprovided by the working groups on thesetopics; and, second, various state agenciesare covering these issues in separateprocesses. Future strategic planning cyclesare likely to address these issues.Many of the strategies in the Plan do not require changes in state or federal law or the regulations ofvarious agencies. Specifically, most of the activities to be implemented in the near term (approximately2009-2011) are expected to be feasible under current law and the rules of the CPUC and other agencies.However, there are longer term elements of the Plan for which changes in law and/or agency rules andpolicies would be useful—or even essential—to achieve the desired cost-effective energy efficiency overthe 2009-2020 period.1.6 UPDATING THE PLANThis Plan is a dynamic document that will beregularly updated to reflect past successes,failures, and lessons learned and to adjust thevisions, goals and strategies accordingly. Giventhe urgency of the need to achieve the AB 32goals, it is necessary to quickly and efficientlycomplete foundational activities such as studies,data collection and pilot programs and to movejust as quickly to implement actual programsand deliver real results in the near term.The process that started during the fall of 2007was a tremendous and highly productive effortby the utilities, CPUC, and the EnergyCommission working with a large number ofstakeholders from all sectors of the Californiaeconomy. This process must continue in orderto continue the momentum and build thesustained velocity needed to achieve the goalsexpressed in this Plan.In the short term, this process will be advancedthrough the establishment of goal and/orstrategy-specific task forces, to be coordinatedby the CPUC. Over the longer term, there iswidespread stakeholder support for coordinationat a statewide level by an entity with amembership and mandate better suited to themulti-jurisdictional scope of the strategiesarticulated in this Plan. Such an entity wouldbuild on the collaboration initiated by thestrategic planning process thus far and allow forenhanced participation by all stakeholders.INTRODUCTION SECTION I – PAGE 7


The next planning cycle will include:• Incorporating data collection efforts, includingmarket assessment and market potentialstudies, more directly in this and otherplanning processes, such as the EnergyCommission‘s IEPR and the utilities‘ longtermprocurement planning processes.• Aligning this planning effort with relatedstatewide long-term resource plans, such asthose associated with water, land use, andgreenhouse gas mitigation.• Evaluating performance with respect to thegoals and strategies established in thecurrent Plan, and market transformationcriteria in particular.• Engaging even more key stakeholders priorto initiating the planning cycle andcooperatively developing roles and a processthat increases information exchange andparticipation of these stakeholders.Conducting more widespread publicworkshops to enable these stakeholders toprovide planning input and to vet planningdocuments.• Central to this expanded process will beparticipation by additional state agencies,which may wish to co-sponsor various taskforces—for example, in Workforce Educationand Training or the Agricultural Sector -- andobtaining commitments from key participantswilling to fund, lead, or implement strategies.INTRODUCTION SECTION I – PAGE 8


10%2. RESIDENTIAL SECTOR INCLUDING LOW INCOME2.1 CORE RESIDENTIAL2.1.1 VISIONResidential energy use will be transformed to ultra-high levels of energy efficiency resulting inZero Net Energy new buildings by 2020. All cost-effective potential for energy efficiency, demandresponse and clean energy production will be routinely realized for all dwellings on a fullyintegrated, site-specific basis.2.1.2 PROFILEIn 2008, energy demand forCalifornia‘s 12.6 million householdswas over 25,000 MW. Theresidential sector representsapproximately 32 percent of totalstate electricity consumption and 36percent of its total natural gasconsumption. Electricity demand isexpected to grow to almost 31,000MW by 2018. 23Distribution of California Household by Home Ownership(Source: RASS 2003, HENS 2004)70%60%50%40%30%20%10%0%OwnRent(Individually Metered)Rent(Master Metered)% of All CAHouseholds% of Low IncomeHouseholdsApproximately one-third of allhouseholds live in multi-familystructures, and two-thirds in singlefamily homes. The balance ofrenters to homeowners is about 42percent to 58 percent, respectively.Most or all of these householdsqualify for utility energy efficiencyprograms targeting residentialcustomers. 24 About one-third(approximately 4 million) of thesehouseholds qualify for additional lowincome energy efficiency (LIEE)programs extended to households withannual incomes less than or equal to 200percent of federal Poverty Guidelines. 2570%60%50%40%30%20%10%0%60%50%40%30%Distribution of California Household by Dwelling Type(Source: RASS 2003, HENS 2004)SingleFamilyMulti-family(2-4 Units)Multi-family(5+ Units)RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 920%MobileHomeDistribution of California Household by Size of Home(Source: RASS 2003, HENS 2004)% of All CAHouseholds% of Low IncomeHouseholds% of All CAHouseholds% of Low IncomeHouseholds


Pursuant to a legislative mandate to reduceenergy usage in California, the EnergyCommission adopted California‘s ApplianceEfficiency Regulations in 1976 (Title 20) andPart 6 of Title 24 of the California Code ofRegulations, the Energy Efficiency Standards forResidential and Nonresidential Buildings in 1978,(Title 24). 26 The Title 24 standards are updatedtriennially to incorporate new energy efficiencytechnologies and methods. The Title 20 standardsare updated more frequently.The utilities have responded to the diverseneeds of California‘s residential sector byoffering a wide range of energy efficiencyprograms that impact every level of theresidential market, including rebates for efficientproducts, such as lighting, air conditioners, andrefrigerators; training and education toarchitects, engineers, building managers andbuilding inspectors; and work to enhance theEnergy Commission‘s building and appliancecodes and standards. The utilities also haveintroduced a number of innovative whole houseor community-wide programs such as the SCESustainable Communities program which targetsnew residential developments and the Designfor Comfort Program that provides efficiencyassistance to affordable housing developmentsthat are undergoing renovation.Statewide Average Electricity Use Per HouseholdStatewide Average (5,914 kWh Electricity per Household)Use Per HouseholdStatewide Average (5,914 kWh Electricity per Household)Use Per HouseholdLighting (Estimate)*Water Heating – 3%(5,914 kWh per Household)Lighting (Estimate)*– 22%Water Miscellaneous Heating – 3%11%– 22%Miscellaneous 11%Lighting (Estimate)*Space Water Heating – 3%4%– 22%Space Miscellaneous Heating – 11%4%Laundry – 5%Laundry Space Heating – 5%– 4%Refrigerators andDishwashing andRefrigerators Freezers – 19%andDishwashing Cooking Laundry – 5%andFreezers – 19%Cooking Pools and – 5%Spas – 6%Refrigerators andDishwashing andPools and Spas – 6%Freezers – 19%Cooking – 5%(A) TV, CORE PC, and RESIDENTIAL SEGMENTAir Pools Conditioning and Spas – 6%10%Office EquipmentTV, PC, andAir Conditioning – 10%Office Equipment– 15%TV, PC, – 15%andAir Conditioning – 10%Office Equipment* Note: An estimate of 1,200 kWh per household (20% of the total use) has been* designated Note: – 15%An estimate as interior of lighting 1,200 kWh and per was household shifted from (20% Miscellaneous of the total use) to Lightinghas beendesignated where it is combined as interior with lighting exterior and lighting was shifted usage. from This Miscellaneous number comes to Lightingfrom otherwhere lighting * Note: it An studies is combined estimate that are of with 1,200 better exterior kWh able lighting per to pinpoint household usage. this (20% This estimate number of the than total comes a use) conditionalfrom has otherbeenlighting demand designated studies model as interior that as was are lighting used better for able and the was to RASS.pinpoint shifted this from estimate Miscellaneous than a conditionalto Lightingdemand where it model is combined as was with used exterior for the lighting RASS.usage. This number comes from otherVISIONSource: lighting Residential studies that are better Appliance able to pinpoint this Saturation estimate than a conditional Survey (RASS) by the California Energy Commission, June 2004,demand model as was used for the RASS.by 2018 through phased increases in the EnergyCommission‘s Title 20 regulations, with the firstphase of the standards taking effect by January1, 2010. 28 These changes in the lighting marketprovide will allow opportunities to redirectutilities‘ residential energy efficiency resourcestowards new lighting technologies and otherinnovative programs focused on whole-buildingefficiency measures.Executive Over the Summary, past two utility pps. 3, program 8. cycles(2004/2005 and 2006/2008), the utilities havefocused heavily on residential lighting, whichaccounts for the largest electricity end use in theresidential sector. As a result, the bulk ofresidential efficiency savings has come fromlighting programs such as measures thatencourage the use of compact fluorescent light(CFL) bulbs. In the past few years, the CFLmarket has undergone a major transformation,as evidenced by the ubiquity of CFL products inthe retail market and recent energymeasurement and verification studies.A major transformation of the lighting market willbe completed through the passage andimplementation of AB 1109, the 2007 CaliforniaLighting Efficiency and Toxics Reduction Act. 27AB 1109 requires a 50 percent increase inefficiency for residential general service lightingPools, Spas, Misc. – 3%Dryer – 3%Cooking – 22%Water Heating – 44%Statewide Average Natural Gas Use Per HouseholdSpace Heating – 44%Likewise, the strategies set forth in this Plan willcreate longer-term savings from the builtenvironment with a goal of continualincorporation of advances into codes andstandards or the private marketplace. The2009-2011 IOU program cycle will lay thefoundation for aggressive, long-term strategiesto change the way residential buildings areconstructed, used and maintained.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 10


2.1.3 GOALSGoal1. New construction will reach “zero net energy” (ZNE)performance (including clean, onsite distributedgeneration) for all new single and multi-family homesby 2020.2. Home buyers, owners and renovators will implement awhole house approach to energy consumption that willguide their purchase and use of existing and newhomes, home equipment (e.g., HVAC systems),household appliances, lighting, and “plug load”amenities.3. Plug loads will be managed by developing consumerelectronics and appliances that use less energy andprovide tools to enable customers to understand andmanage their energy demand.4. The residential lighting industry will undergosubstantial transformation through the deployment ofhigh-efficiency and high-performance lightingtechnologies, supported by state and national codesand standards.Goal ResultsBy 2011, 50% of new homes will surpass 2005 Title 24standards by 35%; 10% will surpass 2005 Title 24 standardsby 55%.By 2015, 90% will surpass 2005 Title 24 standards by 35%.By 2020, all new homes are ZNE.Energy consumption in existing homes will be reduced by20% by 2015 and 40% by 2020 through universal demand forhighly efficient homes and products.Plug loads will grow at a slower rate and then decline throughtechnological innovation spurred by market transformationand customer demand for energy efficient products.Utilities will begin to phase traditional mass market CFL bulbpromotions and giveaways out of program portfolios and shiftfocus toward new lighting technologies and other innovativeprograms that focus on lasting energy savings and improvedconsumer uptake.Transformation of markets for new multi-familyhomes can be achieved through strategiestargeting the Commercial or Residential sectorsor a combination of both, since rental buildingsare commercial enterprises as well as dwellingunits. In this first Plan, with the exception of theapproximately 50 percent of LIEE-eligiblehouseholds living in multi-family housing, thereis no specific focus on strategies to upgradeefficiency in existing multi-family dwellings. Thisis a recognized shortcoming and strategies forthis market must be addressed in greater detailin the next iteration of this Plan.The leadership and active participation of manyorganizations are also necessary to achieve thevision for the residential sector. The EnergyCommission must continue to lead the efforts tocontinually enhance and expand the buildingand appliance codes with active technicalsupport and expertise from the IOUs, nationallaboratories, and the building industry.In addition, the United States Department ofEnergy (DOE) and the United StatesEnvironmental Protection Agency (EPA) playcritical roles in residential energy efficiencyefforts. Moreover, significant attention must bedirected towards manufactured (or―prefabricated‖) housing, a substantial andgrowing component within new housing stock,which is built under federal code set by theUnited States Department of Housing and UrbanDevelopment.Extensive R&D efforts and partnership programswill push the market further. For technologicaladvances in buildings, appliances and plugloads, the IOU‘s Emerging Technologiesprogram and the Energy Commission‘sratepayer-funded Public Interest EnergyResearch (PIER) program must workcooperatively with the national laboratories andprivate industry to achieve the advancesenvisioned in this Plan.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 11


2.1.4 STRATEGIESThe market transformation envisioned by the residential sector Vision and Goals involves changing boththe supply chain of products and services and the behaviors that residential energy consumers rely on touse energy efficiently. The four interrelated residential Goals are designed to achieve this transformationthrough the following themes:1. Building Innovation: Drive continualadvances in technologies in the buildingenvelope, including building materials andsystems, construction methods, distributedgeneration, advanced metering infrastructure,and building design, and incorporate technologyadvances into codes and standards.2. Comprehensive Solutions: Develop, offerand promote comprehensive solutions for singleand multi-family buildings, including energyefficiency measures, demand management toolsand real-time information, and clean distributedgeneration options in order to maximizeeconomic decision-making and energy savings.3. Customer Demand: Create high levels ofcustomer demand for progressively moreefficient homes through a coordinated statewidepublic education campaign and targetedincentive programs.4. Statewide Solutions: Coordinate andcollaborate with state agencies and privateorganizations to advance research anddevelopment and to align state efforts onbuildings.5. Financing: Work with the financialcommunity to develop innovative and affordablefinancing options for energy efficient buildingsand retrofits.6. Codes and Standards: Adopt aggressiveand progressive minimum energy codes andstandards for buildings and plug loads, effectivecode compliance and enforcement, and parallel,tiered voluntary energy efficiency standards thatpull the market along and set a higher bar forsubsequent standards.__________________________________________________While the overall mission for the residentialsector is ambitious, these goals and strategiesare interrelated and many of the efforts to reachone goal will contribute to the achievement of adifferent goal; for example, success in Goal 3(Plug Load) will contribute to the success ofGoal 1 (ZNE Homes) and Goal 2 (Whole HousePerformance). Improvements in buildingstandards resulting from improvements intechnologies (Goal 1) will promote efficienciesfrom existing home renovations andimprovements (Goal 2).Certain strategies in the residential market (e.g.,marketing, education and outreach) are part oflarger, cross-cutting strategies. As aconsequence, the strategies described belowcontain a certain amount of repetition and crossreferencing;however, each strategy will requirerefinements to accomplish the specific goal fortarget markets. This is consistent with ouroverall goal of encouraging integrated energyefficiency programs that recognize and leveragethe benefits of related projects, while at thesame time aligning specific strategies with therequirement of each goal.2.1.5 IMPLEMENTATION PLANGoal 1: Deliver Zero Net Energy New Homes By 2020.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 12


Goal 1 envisions a continual and dramaticincrease in the demand for and supply of lowerenergy homes based on new technologies, newbuilding principles, and policy support to achievea statewide standard of zero net energy (ZNE)for all new homes built in 2020.A ZNE home employs a combination of energyefficiency design features, efficient appliances,clean distributed generation, and advancedenergy management systems to result in no netpurchases of energy from the grid. The CPUChas defined ―Zero Net Energy‖ at the level of asingle ―project‖ seeking developmententitlements and building code permits in orderto enable a wider range of technologies to beconsidered and deployed, including districtheating and cooling systems and/or small-scalerenewable energy projects that serve more thanone home or business.A wide range of design features may beconsidered to achieve zero net energy, includingbuilding orientation (relative to the daily andseasonal position of the sun), window and doortype and placement, insulation type and valuesof the building elements, weatherization, theefficiency of heating, cooling, lighting and otherequipment, as well as local climate.Heating and cooling loads are lowered by usinghigh-efficiency equipment, added insulation,high-efficiency windows, in addition to passivesolar and other design elements; water heatingloads can be alleviated by using heat recoveryunits and high-efficiency water heatingequipment; lighting energy needs are reducedby daylighting and fluorescent and LED fixtures;while plug loads are managed by efficientappliances and minimized standby power.WHAT IS ZERO NET ENERGY?Zero net energy is a general term applied to a building with a net energy consumption of zero over atypical year. To cope with fluctuations in demand, zero energy buildings are typically envisioned asconnected to the grid, exporting electricity to the grid when there is a surplus, and drawing electricitywhen not enough electricity is being produced.zero net energyon-site electricity demanddistributed renewable generationThe amount of energy provided by on-site renewable energy sources is equal to the amount ofenergy used by the building.A ZNE building may also consider embodied energy – the quantity of energy required tomanufacture and supply to the point of use, the materials utilized for its building. 29Interim milestones for this programmatic goalare that by 2011, 50 percent of new homes willbe 35 percent more efficient than 2005 Title 24standards (coincident with the EnergyCommission‘s Tier II standard for incentivesunder the New Solar Homes Partnership 30 ) and10 percent will be 55 percent more efficient; andRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 13


Stringency/Energy Savingsthat by 2015, 90 percent of homes will surpass2005 Title 24 standards by 35 percent.The ―Big / Bold‖ goal of achieving ZNE for 100percent of new residential construction and thesupporting interim goals are extremelyaggressive. Accordingly, we characterize themin this first Plan as ―reach‖ and ―programmatic‖goals. They are intended to capture theimagination and spark the enthusiasm of all whoparticipate in transforming residential newconstruction to ultra-high levels of energyefficiency.As part of this effort, California will establish a―Path to Zero‖ campaign sponsored by theCPUC, state agencies, utilities, the buildingindustry, and others. This campaign will featurereal-world experience and data on emergingtechnologies, practices, and designs that deliverzero net and ultra-low energy buildings,coordinated with marketing tactics and financialincentives. A first step will be convening a taskforce of key stakeholders committed to zero netenergy buildings.California‘s Title 24 should continue to beprogressively updated and tightened on atriennial basis along a planned trajectory leadingto achievement of goals for the year 2020.Mandatory standards of Title 24 should be linkedto one or two tiers of voluntary, beyond-codestandards such that the single mandatory andone or two voluntary levels comprise a bronzesilver-goldapproach to residential efficiencyperformance. Each Title 24 Code update willachieve a stepped pattern of tighteningstandards toward what had been the highervoluntary level, dropping the previous minimummandatory (i.e., 2011‘s gold becomes 2014‘ssilver and 2017‘s minimum mandatory). Thesevoluntary silver-gold tiers could be used asGOLDSilver plus:• Zero Net Energy Buildings• Clean Energy Generation• New Technologies• Integrated Design• Transaction MandatesSILVERBronze plus:• Higher Voluntary Energy Efficiency• Local Government Push• Labeling• Incentives & Financing• Broader Energy End-use FocusBRONZE• Minimum T-24 Standards• Strong Enforcement• Building Energy EfficiencyBenchmarksTimealongside mechanisms to demonstrate theireffectiveness and create demand in themarketplace for high-performance buildingsIn July 2008, California‘s Building StandardsCommission (BSC) adopted a first-ever set ofGreen Building Standards that apply tocommercial and residential constructionreference points for ‖reach‖ building policies andprograms, local ordinances, and utilityincentives.statewide. 31 The standards will take effect on avoluntary basis in 2009, and will likely beadopted as mandatory standards by 2012. Inaddition, in August, the City and County of SanRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 14


Francisco adopted a Green Building ordinancerequiring newly constructed commercialbuildings over 5,000 sq ft, residential buildingsover 75 feet in height, and renovations onbuildings over 25,000 sq ft to meet the UnitedStates Green Building Council‘s Leadership inEnergy and Environmental Design standards(LEED) and other green building certifications. 32Similarly, the City of Los Angeles enacted itsown Green Building Ordinance in April 2008,which takes affect later in 2008 and 2009. Itestablishes a series of requirements andincentives for developers to meet LEEDstandards and is expected to affect at least 7.5million square feet each year. 33The emergence of sustainable building policiesand ordinances are an indication that many localgovernments desire building practices that gobeyond state minimum building codes. As morelocal governments enact codes that are morestringent than state codes, a patchwork ofdifferent and potentially conflicting buildingrequirements is arising. As requirementsbecome more varied across geography,developers and particularly production homebuilders may have difficulty designing andbuilding major developments consistent withboth state and local codes.Accordingly, Strategy 2 requires coordination oflocal government building codes anddevelopment policies to facilitate commonapproaches to the adoption and rapid evolutionof highly energy efficient technologies andtechniques in new construction statewide.Coordination also will advance testing ofsustainable building technologies andtechniques in different operating environmentsto provide a stronger basis for progressiveincreases in the stringency and coverage ofenergy efficiency standards within state buildingcodes.The Energy Commission is the logical candidateto lead the codes and standards effort along withthe BSC and the Department of Housing andCommunity Development. Near-term, theEnergy Commission could collaborate with theseagencies to publish a provisional, performancebased―reach code‖ reference standard for―beyond code‖ residential construction inCalifornia. This would be advisory and create areference from which to gauge furtherimprovements.The process could coordinate with the EnergyCommission‘s Public Interest Energy Research(PIER) and other research organizations(Lawrence Berkeley National Laboratory (LBNL),National Renewable Energy Laboratory (NREL),Building Industry Research Alliance (BIRA) toassess and provide the foundation forrecommendations, including monitoring andmeasurement approaches.This Goal also requires a major transformationin the construction, design and usage ofresidences through a combination of mandatesand voluntary actions. The technical feasibilityof ZNE homes is in early stages ofdemonstration through the pioneering efforts ofthe Sacramento Municipal Utility District(SMUD), NREL, and home designers andbuilders. DOE‘s Building America effort, forinstance, has put ZNE research to work inhomes across 34 states. These demonstrationsalso provide a forum for continual research onoptimizing performance of homes with ZNEelements.Several ZNE residential projects, such asSMUD‘s project in Roseville, CA, are alreadyunderway and others are in the planning orconceptual phase. In the near term, the utilitieswill aggressively promote additional proof ofconcept pilots, including affordable housingelements in these pilots.Significant additional resources will be requiredto scale these efforts up to for full-scaleproduction and sale at affordable prices. In aneffort to marshal private, public, academic,corporate, and entrepreneurial resourcestowards this objective, a prominent philanthropyorganization will soon announce an Energy FreeHome Challenge: to achieve zero net energy atzero net cost. Launching in fall 2008, the prizewill award $20 million in cash prizes both forenabling technology innovation and whole-homeinnovation.California will need new, cost-effectivetechnologies for home building materials andfabrication techniques, and ―smarter‖ homeoperating systems, such as visual displays ofreal-time (or near real-time) energy use. Inaddition, the energy efficiencies of householdequipment and appliances must increase. (Inthis regard, see Strategies 2 and 3 below andthe Heating, Ventilation & Air ConditioningRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 15


Chapter.) These innovations must beaccompanied by a strong education, outreachand marketing effort to increase consumerdemand for efficient homes, including the use ofenergy or carbon benchmarks and labels.Affordability is a key consideration in California,where the cost of housing is a serious, long-termissue. 34 A key element of this Goal is todevelop ZNE example homes across thespectrum of housing options, including multifamilyaffordable housing in urban infill areaswith access to public transportation.Finally, innovative financing solutions, such asloans that remain with the property throughowner-occupant turnover and energy efficientmortgages, will be essential in allowing buildersand owners to leverage the cost-savingsinherent in ZNE buildings into investment costs.Furthermore, finance mechanisms must fullyreflect the savings in monthly operating costsfrom low energy homes. New programs mustleverage and build upon financing optionsavailable from private markets and othergovernment initiatives. To this end, the CPUCwill establish a Finance Task Force for thecommercial and residential sectors made up ofmembers of the financial/investment industries;building and developer community; and, state,federal and local governments to identifyexisting and additional needed tools,instruments, and information necessary toattract greater participation of capital markets infunding efficiency transactions. The Task Forcewill identify actors to develop innovative andeffective financing tools especially suited forZNE and ultra low-energy buildings.Goal 1: Zero Net Energy HomesImplementation Plan and TimelineStrategiesNon-CPUCPartnersNear Term2009 – 2011Mid-Term2012 − 2015Long Term2016 − 20201-1: Drive continualadvances in technologiesin the building envelope,including buildingmaterials and systems,construction methods,distributed generation, andbuilding design.EnergyCommission(PIER)UtilitiesDOE, nationallabsProduction homebuilders andbuilding industryorganizations50% of new homesexceed 2005 Title 24standards by 35%10% of new homesexceed 2005 Title 24standards by 55%Develop and participate inpilot projects in specificclimates to provetechnologies for nextgeneration of lower andzero energy homes,including affordablehousing projects.Continually monitorperformance of pilotprojects to providefeedback for next level ofdesign and developmentof technologies.Advance technologicalinnovation throughcollaboration of EnergyCommission PIER andEmerging TechnologiesPrograms, LBNL, NREL,Utilities, CBIA, and otherappropriate organizations.90% of new homesexceed Title 24 by 35%40% of new homesexceed Title 24 by 55%Develop andimplement nextgeneration of pilotprojects; continuallymonitor performance ofpilots to providefeedback for next levelof design anddevelopment oftechnologiesOngoing100% of new homesexceed Title 24 by 35%90% of new homes exceedTitle 24 by 55%Develop and implementnext generation of pilotprojects; continually monitorperformance of pilots toprovide feedback for nextlevel of design anddevelopment oftechnologiesOngoingRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 16


Implementation Plan and TimelineStrategies1-2: Continual coordinationand cooperation betweenthe Energy Commissionand others toprogressively increaseTitle 24 building standardsand Title 20 appliancestandards consistent withthe interim and long-termgoals set forth in this Plan1-3: Coordinate andSupport “Reach” BuildingStandards1-4: Develop innovativefinancing programs for theconstruction of energyefficient homesNon-CPUCPartnersEnergyCommissionUtilitiesLocalgovernmentsCalifornia BuildingStandardsCommissionEnergyCommissionUtilitiesLocalgovernmentsCalifornia BuildingStandardsCommissionBuilding IndustryFinance TaskForceFinancialinstitutionsBuilding IndustryUtilitiesNear Term2009 – 2011Assess existingtechnologies and identifyareas for strategicinvolvement in researchand developmentMap a trajectory for Title24 mandatory andvoluntary standard(s)through 2020Progressively makeenergy efficiencyadvances permanent byraising Title 24 mandatorystandards in 2011consistent with thetrajectoryProgressively advanceTitle 24 voluntary,“beyond code”standard(s) and ratingssystems in step withchanges to the mandatorystandardsIdentify and resolveconflicts orinconsistencies betweenTitle 24 and local “green”building ordinances orother standardsEstablish policies andprocedures for statewidecoordination of localbuilding standards thatare acceptable to localgovernmentsProvide technical supportfor the development andimplementation of reachstandards throughpartnerships with localgovernmentsConvene a task force offinancial experts todevelop attractivefinancial products forenergy efficiency homes.Implement OptionsMid-Term2012 − 2015OngoingFine-tune and revisethe trajectory based onthe changing energyefficiency state-of-theartProgressively makeenergy efficiencyadvances permanentby raising Title 24mandatory standards in2014 consistent withthe trajectoryProgressively advanceTitle 24 voluntary,“beyond code”standard(s) in step withmandatory standards in2011 and 2014Monitor success ofcoordination andresolve new issues asthey ariseOngoing expansion ofthese options.Long Term2016 − 2020OngoingFine-tune and revise thetrajectory based on thechanging energy efficiencystate-of-the-artProgressively make energyefficiency advancespermanent by raising Title24 mandatory standards in2017 and to ZNE by 2020consistent with thetrajectoryProgressively advance Title24 voluntary, “beyond code”standard(s) in step withmandatory standards in2017 and 2020Monitor success ofcoordination and resolvenew issues as they ariseOngoing expansion of theseoptions.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 17


Implementation Plan and TimelineStrategies1-5: Encourage local,regional, and statewideleadership groups tosupport pilots and fostercommunication amongpioneering homeownersand buildersNon-CPUCPartnersLocalGovernmentsHomeownergroupsLeading BuildersUtilitiesNear Term2009 – 2011Develop network ofbuilding owners (homeownersassociations) andbuilders to help supportthe dissemination ofinformation and developpeer-to-peer relationshipsMid-Term2012 − 2015OngoingLong Term2016 − 2020OngoingGoal 2: Transform home improvement markets to apply whole house energy solutions to existinghomes.The overall objective of Goal 2 is to reach allexisting homes and maximize their energyefficiency potential through delivery of acomprehensive package of cost-effective, wholehouse energy efficiency retrofit measures—including building shell upgrades, high-efficiencyHVAC units, and emerging deep energyreduction initiatives— with comprehensiveaudits, installation services and attractivefinancing. This can be achieved through paralleland coordinated initiatives among utilityprograms, private market actors, and state andlocal government policies.The IOUs currently offer a wide range of energyefficiency programs for existing homes, includingaudits, efficient appliance rebates, andconsumer education. This Plan envisions arefocusing of these programs to move from a―widget‖ based approach to a ―whole house‖approach to program delivery to offercomprehensive packages of audits, demandside management options and tools, rebatesand financing options, and installation services.A similar approach must be developed for multifamilyhousing, both condominiums and rentals.The key to this effort will be defining workablefinancing mechanisms that allow energy billsavings from improvements occurring in theindividual units to offset the up-front capital coststypically paid by building owners andhomeowners associations. These mechanismsalso must allow repayment of energyimprovements from successor occupants so thatturnover does not dissuade taking action. Withsuch financing mechanisms, it should bepossible for multi-family housing to take fulleradvantage of both private energy services andutility programs and incentives. Since manylower-income households live in multi-familyhousing, they can be served via the strategiestargeting low income households discussed laterin this Chapter.It is also essential that market actors, onceaware of efficiency opportunities at hand, haveaccess to suitable financing mechanisms forwhole house measures. The Finance TaskForce referenced in the ZNE discussion above,will focus on effective financing tools especiallysuited for whole house retrofit measures.While many residential building retrofit measureshave unacceptably long customer paybackperiods based on energy prices alone, they canfind market acceptance and leverage privatesector investment based on attributes other thanenergy savings (e.g. comfort and noisereduction). Financing mechanisms for wholehouse measures will also improve customeraffordability and thus may increase marketacceptance. In the future, the increased value ofGHG reductions may also improve theeconomics of such measures. These issuesshould be considered in updating themethodology for calculating program or portfoliocost-effectiveness.A key driver for the success of this Goal is tocreate market demand for efficient homes byincreasing awareness of, and information on,energy efficiency. In the near term, the EnergyCommission will adopt its Home Energy RatingRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 18


System (HERS) standards for existing homes bythe end of 2008. In cooperation with the EnergyCommission, the IOUs will begin voluntary pilotprograms to implement the HERS system and toencourage local governments to adoptresidential energy conservation ordinances forenergy ratings at the time of sale. In the longerterm,additional mechanisms might includecommunity initiatives to reduce the ―carbonfootprint‖ of homes or neighborhoods, orpromoting inclusion of home energy ratings inreal estate sales listing information.To achieve both widespread and deep levels ofenergy efficiency throughout the existinghousing stock will require local governmentleadership. Individual local governments canadopt residential energy conservationordinances (RECOs) for energy ratings andpossible improvements at the time of sale.Utility programs can partner with thesegovernments to provide supporting informationon ratings systems, cost-effective measures andrelated implementation issues.In addition, many actors must work together toensure building code compliance. Strengtheningbuilding codes without improving local on-thegroundcompliance leads to illusory progress.Concerns have arisen regarding whether HVACcompliance issues already undermine theeffectiveness of Title 24 standards, andincreasing the stringency and coverage of statestandards is likely to add to these issues. Thereasons behind compliance issues vary withjurisdiction and may include conflicts betweenstate and local priorities, local governmentbudget limitations, and market disincentives forcontractors to comply.The CPUC and utilities should coordinate withthe Energy Commission and local governmentsto identify barriers to aggressive enforcement ofstate building standards and to develop effectiveplans for overcoming these barriers. Anobjective of these plans should be to leveragestate and local resources to improvecompliance. City and county building officials,for instance, are responsible for the vast majorityof Title 24 enforcement, and their statewideassociation, the California Association of LocalBuilding Officials (CALBO) is one key source ofperspective on what is and is not working asenergy standards become more stringent.In order to ensure progress in implementing thisGoal, a task force of key stakeholders should beconvened to refine and oversee the strategiesidentified here.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 19


Goal 2: Existing HomesImplementation Plan and TimelineStrategiesNon-CPUCPartnersNear Term2009 – 2011Mid Term2012 − 2015Long Term2016 − 20202-1: Deploy full-scaleWhole houseprograms.UtilitiesHomeimprovementindustryImplement pilot home retrofitprograms with effective integrationand delivery of comprehensivedemand-side options includingenergy efficiency, demand responseand renewable energy measures inspecific locations to provetechnologies for next generation oflower energy homes in variousclimate zonesMonitor performance ofselected lower energyhomes. Design implement,monitor and continuouslyimprove full-scale programsfor whole house energyefficiency and renewableenergy retrofitsBy 2020:25% of existing homes have a70% decrease in purchasedenergy from 2008 levels75% of existing homes have a30% decrease in purchasedenergy from 2008 levels100% of existing multi-familyhomes have a 40% decreasein purchased energy from 2008levels2-2: Promoteeffective decisionmakingto createwidespread demandfor energy efficiencymeasuresUtilitiesHomeimprovementindustryReal estateindustry assnsLocalgovernmentsComplete initial market research todetermine homeowner “decisiontriggers” to improving home energyefficiency, including an assessmentof the impact of EE or carbonlabelingDevelop, launch, monitor andcontinuously improve campaigns toraise demand for lower energyhomes, including home energy orcarbon labeling programsActively support local governmentsconsidering RECOs to improve theenergy performance of existinghomes at time of sale or duringmajor renovationsDevelop and implement home ratingsystem pilot projects based on theEnergy Commission HERS programFollow-up market researchContinuously improvecampaigns to raise demandfor lower energy homes,including home labelingprogramsFollow-up market researchContinuously improvecampaigns to raise demand forlower energy homes, includinghome labeling programs2-3: Manageresearch intonew/advanced costeffectiveinnovationsto reduce energy usein existing homesEnergyCommissionDOE/NationallabsUtilitiesGather and disseminate informationon advanced retrofits.Advance technological innovationthrough collaboration of EnergyCommission PIER and EmergingTechnologies Programs, Utilities andother appropriate organizations.Promote commercialization of homeenergy management tools includingAMI-based monitoring and displaytoolsOngoingOngoingRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 20


Implementation Plan and TimelineStrategies2-4 Developfinancial productsand programs suchas on-bill financing toencourage demandfor energy efficiencybuilding products,homes systems, andappliancesNon-CPUCPartnersFinance TaskForceFinancialinstitutionsContractorsLocalGovernmentUtilitiesNear Term2009 – 2011Develop partnerships for innovativefinancing programs, such asperformance contracts and City ofBerkeley’s solar and EE propertyloansInvestigate the feasibility of on-billfinancing and other lending products.Convene Task force on Financing withattention to issues of multi-familyhousing and paying for actions withlonger-term paybacksMid Term2012 − 2015Design implement, monitorand continuously improvefinancial products andprograms for whole houseenergy efficiency andrenewable energy retrofitsLong Term2016 − 2020Design implement, monitor andcontinuously improve financialproducts and programs for wholehouse energy efficiency andrenewable energy retrofits2-5: Increase Title 24compliance throughspecific measuresleading to aggressivestatewideenforcementEnergyCommissionStateContractorLicensingBoardUtilitiesLocalGovernmentsCALBOCalifornia BSCIdentify the barriers to compliance anddevelop a compliance plan toimplement remedial measures,including legislation if necessary.Leverage the compliance planmeasures to support enforcement oflocal energy efficiency codes andstandards. Identify opportunities forleveraging Title 24 and local codesenforcementDevelop program models that requireproof of code compliance as acondition of receiving rebates orfinancing80% of transactions thattrigger Title 24 requirementswill comply with all applicablerequirements.Monitor success or failure ofleveraging and pursueadditional actions to achievesuccess as necessaryMonitor success or failure ofleveraging and pursue additionalactions to achieve success asnecessaryGoal 3: Develop comprehensive, innovative initiatives to reverse the growth of plug load energyconsumption through technological and behavioral solutions.Plug loads are a complex, rapidly growing driverof electricity consumption, which currentlyaccount for at least 10-15 percent of overallhousehold energy use. 35 The loads range fromthe ubiquitous energy thief transformers onalmost every electronic appliance to homeoffices and the 1+ kW home entertainmentcenters growing in popularity. Potential savingsfrom this plug load strategy could be 200 MW by2011, with larger potential savings in the future.Reduce plug loads will require changes inconsumer purchasing patterns, research todevelop smarter products, commercializationsupport for such products in terms of upstreamrebates and incentives, and stimulation ofcustomer demand through informationalinitiatives including unbiased and ubiquitouslabeling. Ultimately, these savings will need tobe locked in by raising state and federalstandards.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 21


Goal 3: Reduce Plug LoadsStrategiesNon-CPUCPartnersImplementation Plan and TimelineNear Term2009 – 2011Mid Term2012 − 2015Long Term2016 − 20203-1 Drive continualadvances inresidential energyusage, includingplug loads, homeenergymanagementsystems, andappliancesEnergyCommission(PIER)UtilitiesLBNLAppliancemanufacturersRetailersWork with researchorganizations to developsmarter products with lowerenergy requirements.Work with manufacturers toraise product energy efficiency,both when in use and when instandby mode10% reduction in plugloads25% reduction in plugloads3-2 In coordinationwith Strategy 2-2above, developpublic awareness ofand demand forhighly efficientproductsUtilitiesManufacturersretailersLocalGovernmentConsumerinformationoutletsComplete initial marketresearch including identificationof customer decision triggersfor choosing highly energyefficient devices.Implement public awarenessand information campaign topromote purchase of moreefficient products and createbehavioral changes in the wayproducts are perceived, used,and managedFollow-up marketresearchFollow-up marketresearch3-3: Create demandfor such productsthrough markettransformationactivities3-4: Continuouslystrengthenstandards, includingthe expansion ofboth Title 24 and 20to codify advancesin plug loadmanagementUtilitiesIndustrypartnersEnergyCommissionUtilitiesDeploy package of rebates,incentives and voluntaryindustry agreements to bringsignificant numbers of the bestcurrent technologies formanaging plug loads (e.g.,smart power strips andinformative visual displays) tomarketPromote unbiased labels andWeb sites (Consumer Reportsapproach)Continuously incorporate gainsin efficiency in the appliancestandardsOngoingContinuouslyincorporate gains inefficiency in theappliance standardsOngoingContinuously incorporategains in efficiency in theappliance standardsRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 22


2.2 LOW INCOME RESIDENTIAL SEGMENT2.2.1 VISIONBy 2020, 100 percent of eligible and willing customers will have received all cost-effective LowIncome Energy Efficiency measures.2.2.2 PROFILECalifornia‘s Low Income Energy Efficiency(LIEE) programs provide no-cost energyefficiency and appliance testing and repairmeasures to qualified low income customers inrental and customer-owned residences. Thecomplementary objectives of the LIEE programsare to provide an energy resource for Californiaand to produce energy savings, while reducinglow-income customer bills. Customersqualifying for LIEE programs represent up to 30percent of the IOUs‘ residential customers—orabout 3.8 million households. In the past tenyears, LIEE programs have provided about 1.6million low-income households a range ofenergy-related services including homeweatherization, refrigerator replacement, repairand replacement of heating and air conditioningequipment, and CFL distribution.Although a large number of homes havebenefitted from measures under the LIEEprograms over the past 10 years, more than 50percent of low income residences have yet toreceive energy efficiency upgrades. TheCommission has called upon the IOUs for afresh look at LIEE programs to provide anexpanded role for LIEE programs as a Californiaenergy resource, working in concert with otherefforts to address climate change and meetingthe needs of more low-income customers. Inparticular, the Commission has adopted aBig/Bold Strategy to provide all eligible andwilling low income customers the opportunity toparticipate in the LIEE programs and to offercost-effective and quality-of-life improvingenergy efficiency measures in their residencesby 2020.During the initial years of this Plan, the IOUs willfocus their efforts on developing a more effectiveoutreach program using segmentationtechniques to identify target groups within thelow income populations. In order to serve theseadditional households, the IOUs will designprograms to be more administratively andoperationally efficient. In the near term, theIOUs will develop partnerships with communityorganizations and local governments to leverageexisting services and tools.2.2.3 GOALSThis Plan contains two goals to achieve the LIEE vision:Goal1. By 2020, all eligible customers will be given theopportunity to participate in the LIEE program.Goal ResultsMarketing, Education and Outreach programs will be highlysuccessful and the number of eligible households inCalifornia receiving LIEE services will increase.LIEE customers will be educated on the benefits of energyefficiency and conservation behaviors.A trained LIEE workforce will accommodate future jobRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 23


2. The LIEE programs will be an energy resource bydelivering increasingly cost-effective and longer-termsavings.demand and educate their communities.Other state, federal and local programs will be leveraged tostreamline and improve customer identification and programdelivery.LIEE programs will be integrated with core energy efficiencyprograms to achieve economies of scale.Participants will receive comprehensive energy efficiencyservices that produce long-term energy savings for the state,while reducing low-income customers’ bills and improvingtheir quality of life.2.2.4 STRATEGIESThe market transformation envisioned for theLIEE sector involves changing both the deliveryof products and services and the behaviors thatlow income energy consumers rely on to useenergy efficiently.The LIEE Goals require leadership from the LowIncome Oversight Board and the IOUs workingin partnership with community-basedorganizations, contractors, educational andtraining institutions, and local, state and federalagencies that also serve the low incomecommunity.2.2.5 IMPLEMENTATION PLANGoal 1: By 2020, all eligible customers will be given the opportunity to participate in the LIEEprogram.California and the IOUs will approach this Goalthrough two broad efforts: Marketing, Education,and Outreach (ME&O) and Workforce Educationand Training (WE&T). These broader efforts willencompass current activities as a foundation,but will expand to newer, more creative efforts.ME&O efforts will be improved through thestatewide collaborative and integrated approachas discussed in the ME&O Chapter. As part ofthe overall ME&O program, additional effortsspecifically designed for the low incomecommunity will be implemented. The IOUs willtarget outreach efforts based on four customerprofile segments: geography, demographicdescription (e.g., language preference), socialnetworks; and level of energy use. Though thislist of factors may expand over time, itrepresents an extension of current approachesand areas scheduled to be further developed inthe IOUs‘ 2009-2011 programs.Second, the IOUs will focus on improvingdelivery methods so that all willing and eligiblecustomers can be reached by 2020. Thesegmentation approach discussed earlier willimprove the efficiency of delivery by identifyinggeographic and social concentrations ofcustomers to achieve economies in delivery,material purchasing and resources. It alsopromotes effective use of low-income serviceproviders, including community-basedorganizations and other qualified agencies. Thesegmentation or tiered approach will enable theIOUs to offer more households measures moreefficiently.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 24


The expanded LIEE programs will requireadditional trained professionals. Training effortsfor the LIEE program are addressed by thestrategies described in the WE&T Chapter of thePlan, including incorporating the needs of theLIEE programs into the needs assessment. Theneeds assessment will include the developmentof LIEE job definitions, inform a LIEE TrainingRoadmap, and ensure trained resources areavailable to deliver LIEE services. To promotesubstantial growth in a trained LIEE workforce,the IOUs will integrate LIEE program installationtraining with other energy efficiency training.This integration will enable a wider network ofproviders to provide for LIEE services andprovide those trained in LIEE access to otherenergy service opportunities.Strategies1.1: Strengthen LIEEoutreach usingsegmentationanalysis and socialmarketing tools1.2: Develop arecognizable andtrustworthyBrand/Tagline forthe LIEE programs1.3: Improve programdelivery1.4: Promote the growthof a trained LIEEworkforceGoal 1: Improve Customer OutreachImplementation Plan and TimelineNon-CPUCNear TermPartners2009 – 2011IOUsIdentify, implement andLow incomeevaluate effective marketing,customerseducation and outreachLIOBmethods for targeting lowincomeContractorscustomer segmentsCommunity BasedUse social marketing toOrganizationseffectively engage low(CBOs)income customers inprogram participationME&O TaskforceLocal, state andfederal agenciesIOUsLow IncomecustomersLIOBContractors(CBOs)IOUsLIOBLow IncomeCustomersCBOsContractorsLocal, state andfederal agenciesWE&T Task ForceIOUsLow incomecustomersLIOBContractorsCBOsLocalGovernmentsDevelop a statewideprogram name anddescription for LIEE which iscoordinated with the ME&Oefforts for energy efficiency,demand response and anyother demand-side optionsImplement branding.Use information fromsegmentation analysis toachieve efficiencies inprogram delivery.Leverage with Local, state,and federal agencies as wellas other organizations toincrease seamlesscoordination, efficiency andenrollmentIncorporate LIEE trainingneeds into the WorkforceTraining needs assessmentDevelop Training Roadmapwhich includes fundingrequirements and sourcesother than IOUsImplement LIEE workforceeducation and trainingMid Term2012 − 2015Implement energyeducation designed to helpcustomers understand andchange behaviors in waysthat support LIEE savingsLaunch integratedEE/LIEE/DSM brandOngoingImplement LIEE workforceeducation and training.Coordinate resources fortraining related to LIEEprogram needs to ensuredelivery of LIEE-trainedresources to the programLong Term2016 − 2020Continue to assessand evaluatecustomer-behaviorand energy savings;improve uponoutreach to eligiblecommunitiesEvaluateprogress/refinestrategyOngoingImplement LIEEworkforce educationand training.Coordinate LIEEworkforce andservice providerswith broader marketRESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 25


Goal 2. The LIEE programs will be an energy resource by delivering increasingly cost-effectiveand longer-term savings.Significant opportunities exist for increasedcollaboration between the IOUs and the stateand federal agencies providing services to thelow-income community. In particular, datasharing with other state and federal agencies,and collaborating with community partners toleverage federal, state and local funds arecritical in achieving this Goal.The IOUs currently have successful partnershipswith low-income population assistance agencies,community based organizations, countyagencies, and water districts. Over the longerterm,utility efforts will increase the number ofpartnerships with additional resources andorganizations.In addition to working with other local, state andfederal agencies, the IOUs will focus onproviding LIEE program measures and servicesthat are cost-effective and emphasize long-termand enduring energy savings—for example,refrigerators, attic insulation, and other majorappliance replacements. The LIEE program mayalso include measures that improve customers‘quality of life.The LIEE programs will also incorporate themost recent strategies and programs in the coreresidential sector energy efficiency and DemandSide Management (DSM) programs, includingthe energy efficiency mandates of the CaliforniaSolar Initiative (CSI). The IOUs will ensure thatLIEE participants are made aware of coreenergy efficiency and demand responseprograms at the time of enrollment. LIEEmessaging and outreach will be integrated intoenergy efficiency marketing to provideinformation on energy efficiency and demandresponse programs to low-income customers.The LIEE programs will also receive the benefitsof the core residential strategies on new andexisting homes. As new technologies arecommercialized for reduced plug loads, energymanagement tools, and building materials, theywill be incorporated into the programs offered tolow income customers. As advanced meters aredeployed, the LIEE programs will ensure thatlow income customers receive the benefits ofenergy management tools. As discussed above,the ZNE new residential homes goal will includeaffordable housing components.In some cases, strategies identified for the coreresidential sector will be modified for the LIEEcontext. For instance, while we have indicated aparticular strategic direction for lightingprograms in the core residential sector, it maybe appropriate to take an alternative approachwithin LIEE programs, largely due to the highinitial costs of CFLs and high-efficiency lightingtechnologies.The IOUs will focus on improving deliverymethods so that all of these homes can bereached by 2020. The segmentation outreachapproach discussed earlier will improve theefficiency of delivery by identifying geographicand social concentrations of customers toachieve economies in delivery, materialpurchasing and resources. It also promoteseffective use of low-income customer serviceproviders, including community-basedorganizations and other qualified agencies. Thesegmentation or tiered approach will enable theIOUs to offer more households measures moreefficiently.RESIDENTIAL AND LOW INCOME SECTION 2 – PAGE 26


Goal 2: LIEE is an Energy ResourceStrategies2.1: Increasecollaboration andleveraging ofother low-incomeprograms andservicesNon-CPUCPartnersIOUsLIOBCBOsDepartment ofCommunityServicesLocal, state,and federalGovernmentImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Identify key areas where data Continue to expandsharing would be advantageous partnerships withand seek legislative changes to stakeholders and seek newease data sharing betweenopportunities for data sharingagenciesDevelop partnerships toleverage resources availablefrom local governments, federal,state, and private projectfunding sourcesLong Term2016 − 2020Continue to expandpartnerships withstakeholders andseek newopportunities for datasharing2.2: Coordinateand communicatebetween LIEE,energy efficiencyand DSMprograms toachieve serviceofferings that areseamless for thecustomer2.3: Provide lowincome customerswith measuresthat result in themost savings inthe LIEE program2.4: Identifyingsegmentedconcentrations ofcustomers toimprove deliveryIOUsLIOBIOUsLIOBIOUsCBOsLocalGovernmentsEnsure LIEE participants areaware of energy efficiency andDSM/EE programsCoordinate with CSI programsto provide LIEE programservices in qualified low incomehousing for both single familyand multi-family CSI programs.Coordinate AMI delivery andLIEE ProgramsAssess design of programs toensure increasingly costeffectivemeasures, whilereducing low-income customers’bills and improving quality of lifeContinue to include measuresthat provide long term energysavings, such as refrigeratorsIdentify and develop segmentedapproach to deliver services tohouseholdsImprove use of CBOs indelivering services.Continually reevaluate andupdate programs to takeadvantage of newtechnologiesExplore in-home displays;home area networks and/or“pay-as-you-go” technology toassist low income customersmanage their useAssess opportunities toincorporate new energyefficiency measures into theLIEE program, e.g., plug-loadreduction, new HVACtechnologyEvaluate approach determinewhether additional segmentsare neededContinually reevaluateand update programsto take advantage ofnew technologiesContinue to evaluateContinue to evaluateCOMMERCIAL SECTOR SECTION 3 – PAGE 27


3. COMMERCIAL SECTOR3.1 VISIONCommercial buildings will be put on a path to zero netenergy by 2030 for all new and a substantial proportionof existing buildings. Innovative technologies andenhanced building design and operation practices willdramatically grow in use in the coming years through acombination of comprehensive whole buildingprograms, technology development, market pull,professional education, targeted financing andincentives, and codes and standards.3.2 PROFILECommercial buildings consume more electricitythan any other end-use sector in California. Thesector‘s 5 billion-plus square feet of space isvery diverse—not only office buildings butstores, restaurants, warehouses, schools,hospitals, public buildings and facilities 36 , andothers—in aggregate accounting for 38 percentof the state‘s power use and over 25 percent ofnatural gas consumption. Four electric end uses(lighting, cooling, refrigeration, and ventilation)account for 75 percent of all commercial electricuse, while just three (space heating, waterThe following chart provides a snapshotof dominant energy end uses forbuildings in California by building typeand energy end use category for 2006:heating, and cooking) account for over 90percent of gas use. These end uses commandattention for energy efficiency savingsstrategies.In terms of the electricity use by the variouscommercial building types, office buildings arethe largest, accounting for nearly 25 percent.Restaurants have a comparable share amonggas consumers. Offices, restaurants, andschools and colleges are in the top five facilitytypes for both fuel types.Table 1 - Profile of Consumption by End Use and Major Facility Type *Electric%CumulativeElectric %Gas %CumulativeGas %End UseEnd UseLighting-inter & exter 34.5 34.5 Space Heating 36.4 36.4Cooling 14.9 49.4 Water heating 31.8 68.2Refrigeration 13.4 62.8 Cooking 22.6 90.8Ventilation 11.9 74.7 Process 5.9 96.7Office Equipment 7.1 81.8 Misc. 1.8 98.5Facility TypeFacility TypeOffice 24.5 24.5 Restaurant 24.5 24.5Retail 14.7 39.2 Health 13.7 38.2Restaurant 8.9 48.1 Office 13.3 51.5Food Store 8.8 56.9 School & College 11.1 62.6School & College 8.8 65.7 Lodging 9.0 71.6Health 6.8 72.5 Food Store 3.1 74.7Lodging 4.9 77.4 Retail 2.5 77.2Unrefrig warehouse 3.7 81.1 Unrefrig warehouse 1.3 78.5* Source: California End Use Survey, 2006COMMERCIAL SECTOR SECTION 3 – PAGE 28


Commensurate with the energy demand fromthe commercial sector, the 2006-2008 IOUenergy efficiency programs for commercialbuilding retrofits is approximately one third of thetotal budget, exceeding $1 billion dollars overthe three year period. The IOUs also offer a―Savings by Design‖ program for newconstruction, which provides incentives toowners and design teams to incorporate efficientsystems into building design or to developprojects that go beyond Title 24 standards usinga whole building approach.For 2009-2011, this Plan envisions an increasedemphasis on programs to exceed Title 24standards with the ultimate goal of buildingcodes and standards that require zero netenergy (ZNE) new construction and retrofits by2030.Achieving the transformational vision and goalsestablished for the commercial sector willinvolve changing energy user behaviors and thesupply chain of services and products thatcommercial end-users rely on to efficiently useenergy as well as continual updating of codesand standards.3.3 GOALSThe following goals will spur actions to transform the energy patterns of California‘s largest energyconsumingsector—its commercial buildings.Goal1. New construction will increasingly embrace zero netenergy performance (including clean, distributedgeneration), reaching 100% penetration of new startsin 2030.2. 50% of existing buildings will be equivalent to zero netenergy buildings by 2030 through achievement of deeplevels of energy efficiency and clean distributedgeneration.Goal ResultsAn increasing percentage of the 50-120 million sq.ft. per yearof new commercial construction will be progressively moreefficient and all new construction will be zero net energy by2030. 250 million square feet (1/20th of existing space) per yearthrough 2030 reach deep levels of energy efficiencyimprovements and clean, distributed generation throughwhole building approaches.3.4 STRATEGIESThree interrelated and comprehensive strategies will be employed to reach the goals for energy efficiencyin new and existing commercial buildings:1. Codes and Standards: Adopt aggressiveand progressive minimum energy codes andstandards for buildings and plug loads, effectivecode compliance and enforcement, and parallel,tiered voluntary energy efficiency standards.2. Access to Information: Align commercialbuilding benchmarking, advanced meteringinfrastructure, energy and carbon labeling, andoperations and maintenance practices toincrease energy efficiency.3. Financing: Target financing and incentivesto support meeting commercial sector goals.Meeting the challenge of reaching ZNE levels,for a substantial fraction of the new and existingcommercial building stock, will likely requireincreased availability and use of innovative andexpanded financing and financial incentives,especially approaches to resolve the ―principalagent‖ problem, when economic motivation issplit between owners and tenants.COMMERCIAL SECTOR SECTION 3 – PAGE 29


These primary strategies will be supported by three enabling strategies:1. Promote integrated design knowledge as thebasis for commercial building design,construction, renovations and occupancy.2. Support targeted research and developmentand promotion of emerging technologies.3. Offer integrated program delivery of DSMretrofit solutions.________________________________________________This Plan envisions that the building industry(including developers, construction firms,building owners, tenants, building managers,contractors and others), the CPUC, EnergyCommission, architectural and engineering(A&E) firms, and utilities embrace the visionstatement and goals as the basis for long-termstrategic planning and actions, assuring othermarket participants of their commitmentsthrough 2030. As a result, demand withinbuilding space markets will provide demand―pull‖ alongside both codes and standards andmarket supply ―push‖ for ZNE and ultra-lowenergy buildings.One promising approach for commercialbuildings is a progressive set of building codesand standards that steadily tightens over thecoming years and is directly linked to one or twotiers of voluntary higher standards, in the―bronze-silver-gold‖ approach described in theResidential Sector Chapter. These voluntaryhigher standards (also known as ―beyond‖ or―reach‖ codes) will be the leading edge thatserves to prove and improve the efficacy andcost-effectiveness of advanced products andpractices. This Plan anticipates that the IOUs, incooperation with the building industry and localgovernments, will continue to play a critical rolein providing technical support for developingthese voluntary standards and the progressivelyhigher mandatory standards.Commercial building market actors tend to followthe industry leaders. Corporate champions andstate and local government leaders can set thedirection and pace using the voluntary higherstandards. The voluntary tiers should be thecommon reference points for utility incentives,local government ordinances, recognition givento highly efficient buildings, and other policy andmarket-based drivers that go beyond theminimum code to pull up new construction andrenovation.A second key approach is to call upon buildingenergy and carbon benchmarking and labelingto inform building owners, tenants, andprospective buyers about the relative efficiency,operating costs, and carbon footprint of buildingsand leased space. This information can helpdrive a competitive market demand for greener,more efficient buildings – both new constructionas well as improvements to existing structures.The Finance Task Force mentioned in theResidential Chapter above, will be critical toidentifying existing and additional means toattracting greater participation of capital marketsin funding efficiency transactions and innovativeand effective financing tools especially suited forZNE and ultra low-energy commercial buildings.This effort comes at a critical period in thedevelopment of California‘s AB 32implementation process, which has identifiedbuilding efficiency as a sizeable source of GHGreductions. The Task Force should investigatemethods to leverage the value of carbonreductions from energy efficiency to financeimplementation of energy efficiency in buildings.3.5 IMPLEMENTATION PLANGoal 1: New construction will increasingly embrace zero net energy performance (includingclean, distributed generation), reaching 100 percent penetration of new starts in 2030.The CPUC and the Energy Commission haveadopted the goal of all new commercial buildingsconstructed to ZNE levels by 2030. ThisBBEES is based on the Architecture 2030‘sCOMMERCIAL SECTOR SECTION 3 – PAGE 30


2030° Challenge, a global initiative to have allnew buildings and major renovations reducetheir carbon emissions by 50 percent by 2010,and then increasing new buildings‘ performanceto be carbon neutral by 2030. A consortium ofgroups including the AIA, the American Societyof Heating, Refrigeration, and Air ConditioningEngineers (ASHRAE), the US Green BuildingsCouncil (USGBC), and the Alliance to SaveEnergy (ASE) have initiated the CommercialBuilding Initiative which is working to develop aframework and strategy for the 2030 Challengegoal. 37In August 2008, DOE launched the ZNECommercial Building Initiative (CBI) which aimsto develop marketable ZNE commercialbuildings by 2025. To help with the CBI, DOEhas formed the National LaboratoryCollaborative on Building Technologies(NLCBT), which will allow DOE and five of itsnational laboratories to work closely on theresearch, validation, and commercializationpriorities that are critical to the success of ZNEbuildings. 38The follow actions are necessary to implement the ZNE goal:• As with the Residential ZNE goal, newconstruction design, products,materials, and operations innovationsmust be developed and implemented.California‘s Title 24 should bebroadened to address as many energyend uses as possible, especially plugloads; metering and data management;automated diagnostic systems; andsub-metering for tenant-occupiedspace. These innovations also canquickly transfer to the existing buildingmarket, especially for those undergoingoccupancy turn-over renovations orimprovements. This effort should be ledby the Energy Commission withsignificant support from the utilities, theBuilding Standards Commission (BSC),the construction and building designindustry, and manufacturers.• The ZNE goal must promote anintegrated design strategy. Integrateddesign brings together all relevantplayers at the start of a building projectto comprehensively analyze andoptimize energy strategies to deliverenergy-efficient, high performancebuildings and renovations, at little or noadditional cost to the building owner.Integrated design can go beyondindividual buildings and considercommunity-level energy and carbonimpacts. Led by the utilities‘ energyefficiency programs, the EnergyCommission and the BSC, inpartnership with the AIA, ASHRAE,USGBC, the California ArchitectsBoard, and construction anddevelopment organizations, shouldpromote the use of buildingcommissioning, retro-commissioning,and ongoing building measurement andverification to validate the buildingperformance goals of integrated designteams.• California‘s ―Path to Zero‖ campaignand associated task force described inthe Residential Chapter will lend realworldexperience and data on emergingtechnologies, practices, and designs todeliver zero net and ultra-low energycommercial buildings.• Financial tools supporting CommercialZNE investments will be essential. TheFinance Task Force discussed in theResidential Chapter will also focus onsolutions for the commercial sector.These include appraisal, insurance,COMMERCIAL SECTOR SECTION 3 – PAGE 31


and operations pass-throughmechanisms that reflect loweroperating costs, higher property values,and substantial non-energy occupancybenefits from green buildings.Goal 1: ZNE Commercial BuildingsStrategies1-1: Establish a longtermprogressivepath of higherminimum codes andstandards endingwith ZNE codes andstandards for all newbuildings by 2030Non-CPUCPartnersEnergyCommissionUtilitiesBSCA&E firmsBuildingindustryImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Establish one- or two-tiered Develop/adopt processvoluntary EE standards,to adjust the code on acoordinated with greentriennial schedule on abuilding rating systems.“fixed” trajectoryAlign Title 24 targets withgoals of AB 32 and carbonreductionLong Term2016 − 2020RD&DTitle 24updates2021 − 2030RD&DTitle 24updates1-2: Expand Titles 20and 24 to address allsignificant energyend usesEnergyCommissionUtilitiesBuildingindustryBCSDevelop and adopt broadercodes and standards for plugloads, such as copy machines,printers, battery chargers,televisionsExpand Title 24 to includewhole building approachesincluding metering and datamanagement; automateddiagnostic systems; and submeteringfor tenant-occupiedspaceAdopt progressive codes andstandards for highperformance commerciallighting applications.Develop and adoptbroader codes andstandards for plugloads and sub-meteringand automated selfdiagnostic controlsExpand Title 20 andTitle 24 to coveradditional uses such asserver farms, processloads and water useDevelop buildingstandards to betterintegrate on-site cleandistributed generationDevelop andadopt broadercodes andstandards forother end usesand devicesDevelop andadopt broadercodes andstandards forother end usesand devices1-3 Establish a “Pathto Zero” Campaign tocreate demand forhigh-efficiencybuildings1-4: Developinnovative financialtools for ZNE andultra-low energy newbuildingsDOE andother ZNEeffortsBuildingindustriesBuildingownersA&E firmsLocal andregionalgovernmentsUtilitiesFinance TaskForceFinancial andInvestmentcommunity,Commercialdevelopersand TradegroupsUtilitiesConvene leading buildingindustry associations to planand conduct campaignOrganize forums to developand exchange experience anddata on emergingtechnologies, practices anddesigns that deliver ultra-lowand ZNE buildingsDevelop and pilot innovativefinancial toolsIdentify building performancemetrics or documentationneeded to inform buildingperformance and valuationDevelop performance dataDevelop companionstrategies to createdemand in themarketplace for highscoringbuildingsStimulate rapidinnovation toward ZNEamong design,engineering, andconstructionprofessionals viacompetitions or otherrecognitionDisseminateperformanceinformation on newfinancing, insurance,and property valuationinstruments to increaseawareness andutilization withinfinancial and realestate marketsincludingContinue andrefineCampaignExpandImplementation of innovativefinancingmechanismsPromotebenefits viabenchmarks,labeling, andcase studiesConductexpandedCampaignOngoingexpansion ofmost usefulmechanismsCOMMERCIAL SECTOR SECTION 3 – PAGE 32


StrategiesNon-CPUCPartnersImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015owners/investors.Implement mosteffective fundingmechanismsLong Term2016 − 20202021 − 20301-5: Createadditional investmentincentives andleverage otherfunding1-6: Develop a multiprongedapproach toadvance the practiceof integrated designFinance TaskForceUtilitiesFinancial andInvestmentcommunityBuilding tradegroupsIntegratedDesignWorkingGroupUtilitiesAIACABArchitecturalschoolsBuilding andBuildingproductsIndustryASHRAEUSGBCInvestigate other fundingsupport that might be offeredsuch as local government“feebates” for EE/greenconstruction, federal funding,federal or state tax incentives,GHG reduction benefits, e.g.via carbon offsetsPromote ID development viaTitle 24 codes/ standards andmarket activitiesIdentify/develop tools andprotocols from buildingcommissioning, retrocommissioningand buildingM&V to enable ID to bedeployed.Form partnerships withindustry andarchitectural/engineeringschools to promote thepractice of and education in IDProvide incentive credits forprofessionals who maintaintheir accreditation with IDtrainingSecure governmentalsupport for mostpromisingsupplemental funds orinvestment supportPromote widespreadadoption of tools andresources that enableIDCreate market demandfor ID as a key strategyto comply with a vastlyenhanced Title 24Leverage competitionbetween A/E firms toramp up their IDexpertise (similar tohow LEED-AP hasbecome de rigueur)Implement anintegrated designcurriculaOngoingexpansion ofthese optionsOngoingcurriculumenhancementsto promote IDProfessionalboardsestablishminimumguidelines forA/E andconstructionfirms to requireID skills as acorecompetencyamongpersonnelDemonstratehow ID, Cx,RCx, and BldgM&V canproduce GHGbenefitsOngoingexpansion ofthese optionsOngoingexpansion ofthese optionsCOMMERCIAL SECTOR SECTION 3 – PAGE 33


Goal 2: 50 percent of existing buildings will be retrofit to zero net energy by 2030 throughachievement of deep levels of energy efficiency and with the addition of clean distributedgeneration.As discussed above, the commercial buildingindustry tends to respond to industry leaders toset the path for action. Therefore, it is critical tolead by example by making public, state-ownedand leased buildings benchmarked, submetered,and retro-commissioned and energyefficient. In a 2004 Executive Order, GovernorSchwarzenegger established the GreenBuildings Initiative (GBI) which sets a goal ofreducing energy use in state-owned buildings by20 percent by 2015 (from a 2003 baseline) andencourages the private commercial sector to setthe same goal. The Green Action Team (GAT),established by the Order, has carried out effortsover the past three years to promote energyefficiency in state and commercial buildings. 39Both the University of California and theCalifornia State University System havecommitted to sustainable energy goals for theircampuses.Additionally, the state Architect in cooperationwith the Office of Public School Construction isdeveloping a "Grid Neutral by Design" programto encourage schools built and renovated withstate funds to achieve higher levels of energyefficiency and produce as much energy as theyuse over the course of a year. The Grid Neutralschools program will further encourage energyefficient public schools while providing additionalopportunities to implement clean on-sitegeneration as new schools are built and theexisting schools are renovated. 40A wide range of local governments,corporations, and institutions, likewise havecommitted to attaining certification for energyefficiency (via US EPA‘s EnergyStar buildingratings) and/or the US Green Building Council‘sLEED system for green buildings. California hasby far more qualifying facilities in theseprograms than any other state.Goal 2 uses a combination of regulatory andmarket forces to enable owners and tenants tovalue the economic and environmentaladvantages of high-performing (existing) buildings,thereby creating a ―market pull‖ for buildings thatare energy efficient.Goal 2 will also leverage the progress made inmandatory and voluntary codes and standardsdeveloped for Goal 1, by lowering the renovationthreshold at which minimum codes and standardsare applied to an entire existing structure. Thiseffort must be accompanied by appropriatefinancing tools and robust actions to improve andenforce compliance with existing codes forrenovations and by including training of buildingmanagers and operators to ensure maximumefficiency from building systems. As discussed indetail in Chapter 6, special attention must beplaced on proper design and installation/repair ofair conditioning systems.In 2005, the Energy Commission issued a reporttitled, Options for Energy Efficiency in ExistingBuildings, 41 which adopted two strategies forcommercial buildings – benchmarking tools andretro-commissioning guidelines andimplementation. Elements of the benchmarkingstrategy are being implemented through AB 1103(Saldana, 2007) which requires benchmarking ofthe energy consumption of commercial buildingsand disclosure to a prospective buyer, lessee, orlender. 42The Energy Commission‘s benchmarking andretro-commissioning strategies must be furtherimplemented by actions to better align commercialbuilding benchmarking, and operations andmaintenance practices with labeling and financialincentives. The IOUs will link their rebateprograms to benchmarking to spur market demandfor steadily improving benchmarks. During the2009-2011 periods, the goal is to attain abenchmark score for specified buildings; starting in2012-2015, the goal is to attain a minimum EnergyStar benchmark score. In concert withbenchmarking, strategies to increase the role ofasset value ratings, similar to the Home EnergyRating System (HERS), provide a potent means toCOMMERCIAL SECTOR SECTION 3 – PAGE 34


making energy efficiency a key determinant indriving the commercial real estate market.The EPA Portfolio Manager's Energy Starbenchmark rating system is a commonly-usedand well-known benchmarking system wellsuitedto major commercial building types suchas offices and schools. California or EPA willneed to develop other or expanded tools to rateremaining building types including through theuse of asset ratings. Also in the longer term,local governments could adopt ordinances toissue and renew building certificates ofoccupancy only for buildings meeting minimumenergy benchmarks.The benchmarking and labeling mandates mustevolve to include carbon footprint information.Although the US Green Building Council‘s LEEDrating system has become a de facto ―green‖label, it does not provide specific information ona building‘s energy or carbon performance.Annual energy and carbon labels are needed forpopulated buildings to send signals to marketplayers that actual (not just designed) buildingenergy performance is of value in commercialbuilding markets. Protocols for low-carbon andhigh-efficiency commercial building attributes willbe needed to encourage owners and tenants todemand—and, in turn, markets to deliver—highlyefficient buildings.The Energy Commission‘s 2005 Existing BuildingsReport identified development of retrocommissioningguidelines by the EnergyCommission as a key step in the strategy forexisting buildings. The Energy Commissionshould develop such guidelines in the near future.The IOUs should strengthen their existing retrocommissioningefforts by using benchmarkinginformation to strategically identify the bestcandidates for retro-commissioning and promotewhole-building approaches and incentives.Collaboration must occur among the EnergyCommission, CPUC, the building industry, andnational laboratories to develop tools andstrategies to further reduce energy consumptionvia information, behavioral strategies,commissioning and retro-commissioning, andoperating practices. An effective communicationsstrategy to make the business and environmentalcase for owners and tenants to demand highvoluntary performance levels must also bedelivered.Achieving the energy savings identified from codes and standards, benchmarking, and commissioningrequires further action on three fronts.• First is to motivate owners andoperators to undertake improvements.This will mean presenting compellingbusiness cases to top decision-makers,while strengthening the skills andknowledge of building operators.• Second is to ensure access to financingmechanisms that effectively surmountcapital limitations and cash flowrequirements. This means attracting theinterest of banking and capitalindustries to the magnitude ofinvestment and borrowing needs, andidentifying finance mechanisms thatproperly balance recovery of ownercosts through rents, operating costpass-throughs, or sales price premiumsas occupants experience reduced utilitybills, higher worker productivity, andother benefits.• Third is to facilitate the existence ofknowledgeable energy managementservice providers that can convenientlyarrange comprehensive improvementsin buildings. This may requireexperimentation with incentives or newbusiness model incubation to attractand reward those businesses willing tooffer and arrange one-stopcomprehensive energy managementsolutions that achieve deeper levels ofsavings than more typically obtainedfrom the more specialized businessesprimarily operating in energy servicemarkets today.COMMERCIAL SECTOR SECTION 3 – PAGE 35


Goal 2: Existing BuildingsStrategies2-1: Lead byExample:state/localgovernmentsand majorcorporationscommit toachieve energyefficiency, EE,(or green)targets inexisting buildings2-2: Lower thethreshold forapplying codesto existingbuildingsNon-CPUCPartnersState ofCaliforniaGreen ActionTeamLocalgovernmentsBuildingindustryBuildingownersBusinessCommunityEnergyCommissionCaliforniaBuildingStandardsCommissionBuildingindustryLocalgovernmentsImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Ensure all state-owned andleased buildings arebenchmarked and retrocommissionedby 2012Conduct campaign to have 100local governments commit tothe same targetConduct campaign to have 500million sq. ft of commercialspace where owners/tenantspledge to reach the sametarget by 2015Adopt regulations to lowerthreshold applied to existingbuilding renovationsRequire all publicbuildings receivingsignificant financialsupport from the stateare benchmarked andretro-commissioned by2015All state-owned andleased buildings (onaverage) reach EnergyStar equivalent ratingby 2015100 local governmentsreach the Energy Startarget by 2015.500 million sq. ft ofcommercial spacewhere owners/tenantsreach the Energy Startarget by 2015Implement lowerthreshold forrenovationsLong Term2016 − 2020250 localgovernmentsreach theEnergy Startarget by 20202 billion sq. ft.of commercialspace reachthe EnergyStar target by2020If necessary,adoptregulations tofurther lowerthresholdapplied toexistingbuildingrenovations2020-2030400 localgovernmentsreach theEnergy Startarget by 20304 billion sq. ft.of commercialspace reachthe EnergyStar target by20302-3: Ensurecompliance withminimum Title 24codes andstandards forbuildingrenovations andexpansionEnergyCommissionBSCContractorsState LicensingBoardProfessionallicensing/RegistrationagenciesLocalgovernmentsAnalyze and adopt best optionsto ensure compliance withminimum standardsEstablish accepted certificationmethods for voluntary levels ofhigh-performance buildings15% of HVAC sales by 2015are for advanced airconditioning technologiesoptimized for climate variations50% of HVACinstallations complywith codes via permitsby 2015 (Seeimplementation detailsin Chapter 6, Goal 1)By 2020, 90%of HVACsystems areinstalled tocode andoptimallymaintained forsystems’useful life2-4: Establishmandatoryenergy andcarbon labelingand benchmarksLegislatureEnergyCommissionUtilitiesResearchinstitutionsBuildingownersand operatorsIndustrystakeholdersstate agenciesMandate benchmarking for allcommercial buildings, triggeredby changes in buildingownership, financing or tenancyDevelop or approve protocolsfor benchmarking andcompliance optionsIncorporate carbon footprintinto labelingLink IOU and other incentivesto benchmarksImplement mandatoryenergy and carbonlabeling andbenchmarksPromote nationallabeling andbenchmarkingstandards andprotocolsDevelop minimumlevels of benchmarksto maintain futurecertificates ofoccupancyRequireminimumlevels ofbenchmarks tomaintain futurecertificates ofoccupancyEstablishchange ofownership as atrigger forupdatedbenchmarkingrequirementsEstablishchange intenancy/leaseas a trigger forupdatedbenchmarkingrequirementsCOMMERCIAL SECTOR SECTION 3 – PAGE 36


Strategies2-5: Developtools andstrategies to useinformation andbehavioralstrategies,commissioning,and training toreduce energyconsumption incommercialbuildings2-6: Developeffective financialtools for EEimprovements toexisting buildings2-7: Developbusiness modelsand supplierinfrastructure todeliver integratedandcomprehensive“one-stop”energymanagementsolutions2.8. Improveutilization of plugloadtechnologieswithin thecommercialsectorNon-CPUCPartnersBuildingIndustryEnergyCommissionUtilitiesResearchInstitutionsFinance TaskForceUtilitiesFinancial andInvestmentcommunityBuildingowners andoperatorsReal estatetradeorganizationsLocalGovernmentsUtilities EnergyServiceCompanies(ESCOs) DSMand solarserviceprovidersventure capitalfirms LocalGovernmentsUtilitiesIndustryPartnersImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Identify new or improved toolsand strategies that applyinformation and behavioralstrategies, includingpresentation of economic,comfort and productivity casesto owners, occupants, andappraisersStrengthen tools and practicesfor building commissioningStrengthen Building OperatorCertification (BOC) training forcommissioningQuantify magnitude of buildinginvestment needed inCalifornia to meet long-termEE goals, and identifybusiness-types expected tobenefit from EE investmentsBuild and quantify strongbusiness case for DSM/GHGreduction.Identify tools, instruments, andinformation necessary toattract capital to EEExplore changes to standardlease terms to addressperceived tenant/owner “splitincentives” issueExplore expanding on-billfinancing offerings to otherDSM programsInitiate utility incentive pilotsthat test the viability ofintegrated DSM servicedelivery models (ESCOs,aggregators, etc.)Explore other mechanisms tomore highly rewardcomprehensive energymanagement retrofits, e.g.premium incentives formeasured performance, localgovernment permits incentives,insurance discounts, etc.Test and deploy package ofrebates, incentives andvoluntary industry agreementsto bring significant numbers ofthe best available technologiesfor managing plug loads withinthe commercial sectorQuantify and documentbusiness case for EEcommissioning andoperation andmaintenance (O&MactivitiesRoll out newinstrumentsEvaluate instrumentsand cash flow oftransactions. Promotesuccess storiesRefine or developmost effective EEfinancial instrumentsand business capitalinvestment pathsIdentify and promote toventure capital andinvestment circlesbusiness modelbarriers andopportunities forscalable integratedbusiness modelsIncorporate mosteffective approachesand technologies intobuilding codes andstate/federalequipment standardsLong Term2016 − 2020Use businesscase toexpand BOCprograms toan increasedportion ofcommercialbuildingsEvaluateinstrumentsand cash flowoftransactions.PromotesuccessstoriesApply branding,certification,marketing, orincentivestrategies thatbest delivery onestopcomprehensiveDSM servicesPromote bestpractices andfullyincorporateintobenchmarkingand labelingsystems2020-2030Refine ordevelop mosteffective EEfinancinginstrumentsand businesscapitalinvestmentpathsRefine mosteffectiveintegratedonestopdeliverymodelsRefine andpursue mostpromising newapproachesCOMMERCIAL SECTOR SECTION 3 – PAGE 37


4. INDUSTRIAL SECTOR4.1 VISIONCalifornia industry will be vibrant, profitableand exceed national benchmarks for energyefficiency and resource management.4.2 PROFILECalifornia‘s industrial sector is both a major driver of California‘s economy and a major consumer ofenergy:Contribution of the Industrial Sector(% of total in CA)Electricity use 16Natural gas use 43 33Energy use 44 22End use CO2 emissions 45 20The treatment, distribution, and use of water in California‘s industrial sector contributes an additional3 percent of California‘s electricity use and 14 percent of its non-power plant natural gas. 46Energy consumption in the industrial sector is distributed across a variety of distinct industries andprocesses. As shown below, the largest industrial users of electricity in California are food processingand electronics, although a number of other sectors have also reached significant use levels.INDUSTRIAL SECTOR SECTION 4 – PAGE 38


Industrial Electricty Usage by Industry Type, 2003–OverallEnergyPeak DemandFoodTex tiles/ApparelLumber/FurniturePaperPrintingChemicalsPetroleumRubber/PlasticsStone/Clay /GlassPrim MetalsFab MetalsInd MachineryElectronicsTransp EquipInstrumentsMiscellaneousFoodTex tiles/ApparelLumber/FurniturePaperPrintingChemicalsPetroleumRubber/PlasticsStone/Clay /GlassPrim MetalsFab MetalsInd MachineryElectronicsTransp EquipInstrumentsMiscellaneous0 1000 2000 3000 4000 5000GWh per Year0 100 200 300 400 500 600 700MWThe largest user of natural gas is petroleum sector, with about half going to feedstocks, followed by foodprocessing.INDUSTRIAL SECTOR SECTION 4 – PAGE 39


Industrial Natural Gas Usage by Industry Type,2003–OverallFoodTex tiles/ApparelLumber/FurniturePaperPrintingChemicalsPetroleumRubber/PlasticsStone/Clay /GlassPrim MetalsFab MetalsInd MachineryElectronicsTransp EquipInstrumentsMiscellaneous0 200 400 600 800 1000 1200 1400 1600Millions of Therms (Mth) per YearSource: KEMA 2006, California Industrial Existing Construction Energy EfficiencyPotential StudySeveral factors unique to the industrial sector require an approach to California‘s energy efficiency andgreenhouse gas (GHG) reduction goals different from that used in the commercial and residential sectors:• Industry uses a large quantity of energyand other resources via complex andproprietary processes to create andbring products to market. Products, tovarying degrees, have embeddedenergy that traditionally cannot be―zeroed out‖, although technology ischanging (e.g., the developingtechnologies for ―zero energy‖ cement,dry walls, etc.)• Industrial facilities in California areincreasingly managed by corporationsthat reside outside of the state oroutside of the country and that viewthese facilities as mobile assets in acompetitive global marketplace.• California industry is highly diverse intype, size, and operation; uniformprograms often will not match corporateor facility needs.• Industries are subject to multiplepolicies and rules in resource areas(e.g. air quality, water quality, energyefficiency, GHG reductions, solid wastemanagement), where compliance canraise competing objectives andoutcomes.INDUSTRIAL SECTOR SECTION 4 – PAGE 40


4.3 GOALSGoal1. Support California industry’s adoption of energyefficiency by integrating energy efficiency savings withachievement of GHG goals and other resourcemanagement objectives2. Build market value of and demand for energyefficiency through branding and certification3. Provide centralized technical and public policyguidance for resource efficiency and workforce trainingGoals ResultsBy 2012, the goals, program designs and funding of industrialresource management programs are fully coordinatedEnergy efficiency certification and benchmarking will becomea standard industrial practice for businesses that areresponsible for 80 percent of the sectoral energy usage by2020By 2020, Energy intensity (per gross dollar of productionvalue) will be reduced at least 25 percentThere will be a trained workforce in energy management andsystems energy efficiencyIndustrial consumers will use this knowledge base to informenergy efficiency actions and manage their energy andresource use by adopting best practices4.4 STRATEGIESIndustry has the capacity to significantly improve its overall energy performance and help meet bothprivate-sector and national goals for energy and the environment. There are a multitude of significantbarriers, however, to achieving the full technical or economic potential for energy efficiency in theindustrial sector. These barriers are predominantly institutional and behavioral, not technical. Theyinclude:• Lack of awareness of energy efficiencyopportunities by industry personnelconsultants, and suppliers.• Difficulty in accessing industry-relevanttechnical assistance.• Inadequate availability of qualifiedpersonnel and consistent organizationalstructure oriented towards energy usemanagement.• Primary business focus on optimizingindustrial output, not energythroughput.• Risk aversion to investing in newtechnologies and processes which mayimpact industrial output or quality.• Resource limitations of both time andcapital for assessment andimplementation of energy efficiencyprojects.• Internal hurdle rates that often limitcapital available for energy efficiencyprojects with paybacks longer than twoyears.• Utility program parameters that can beat odds with industry practice (e.g.limitations due to ―free-rider shop‖rules, lack of recognition of savingsfrom process or operational changes,limits on funding for large projects).INDUSTRIAL SECTOR SECTION 4 – PAGE 41


This Plan will use the following strategies to address these barriers:1. Integrated Solutions: Provide integratedenergy solutions and products through a―one-stop shop‖ approach.2. Education and Outreach: Provide energyefficiency education and outreach to createawareness of and demand for continuousenergy efficiency improvements.3. Branding and Certification: Promotecommonly accepted metrics to documentcorporate and facility attainment of resourcemanagement levels, gaining market4.5 IMPLEMENTATION PLANrecognition, spurring peer competition, andfacilitating engagement in market tradingmechanisms.4. Workforce Training: Leverage existingtraining initiatives and technical exchangeforums so that California industries haveaccess to highly-skilled professionals whoare fully knowledgeable in the areas ofsystem energy efficiency and energymanagementGoal 1: Support California industry’s adoption of energy efficiency by integrating energyefficiency savings with achievement of GHG goals and other resource goals.Ideally, this Goal will be integrated with theCARB‘s AB 32 requirements so that industrialfacilities use energy efficiency to meet or exceedregulatory requirements for GHG emissionreductions (as well as water conservation, wastedisposal, and air quality). Properly structured, acoordinated regulatory framework could becoupled with incentives to actively promote andreward measured performance improvementsacross energy, water, GHG emissions, wastedisposal, and air quality.A major strategy will be to directly engageindustry in coordinated interagency planning forthe energy efficiency portions of AB 32. Thiseffort will include examining the potentialbenefits of negotiated, legally bindingagreements with the chief operating officers ofindustrial corporations as a policy mechanism topromote energy efficiency in industry andcorresponding reductions in GHG emissions.The United Kingdom, the Netherlands, Sweden,and a number of other countries have negotiatedagreements programs in place, and such astrategy may work in California. DOE hasbegun development of national voluntaryagreement programs as well. A multistakeholderalliance focused on knowledgesharing and capacity building could further aid inthe adoption of changes in industrial operationsand processes.While the CPUC and IOU utilities couldpotentially develop such a program focused onlyon energy efficiency savings, a programapproach covering all energy resourceutilization, including energy efficiency, demandresponse, energy storage, combined heat andpower, distributed generation, renewables andemerging technologies will provide the greatestbenefit.The food processing industry, with theleadership of the California League of FoodProcessors in partnerships with theManufacturers Council of the Central Valley, hasproposed such a pilot demonstration project thatcould be initiated in 2009.This effort will also enable broadening utilityprogram incentives from the current focus onenergy efficient projects to include energyefficient processes (defined as documented,measurable evidence of energy managementresulting in improved energy efficiency viaprojects, process, and operationalimprovements). The focus must move todelivered energy savings, either from hardwareinstallations or documented permanent changesin operational processes. Utility program rulesmust become more flexible and find ways towork with the reality of industrial decisionmaking,particularly regarding early replacementof equipment.INDUSTRIAL SECTOR SECTION 4 – PAGE 42


Strategy1-1:Developcoordinated energyand resourcemanagementprogram for CA’sindustrial sector, toenhance use ofenergy efficiencyNon-CPUCPartnersCARBCECstate agenciesfor water, solidwaste, andtoxicsubstancesUtilitiesIndustry Reps.Goal 1: Integration with Other Resource StrategiesImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Establish CARB AB 32Industry TeamStudy feasibility ofimplementing negotiatedagreementsUndertake pilot programwith food processingsectorAnalyze results of pilotprogram.If favorable, negotiateagreements with otherkey sectorsLong Term2016 − 2020Implement statewideGoal 2: Build market value and demand for continuous improvement in industrial efficiencythrough branding and certification.Goal 1 above focused on strategies that willsupport development of minimum regulatoryenergy efficiency requirements for eitherindividual company or industrial sub-sectors as awhole, preferably integrated with the state‘s AB32 program. Goal 2 is focused on companiesthat seek to exceed either minimum regulatoryrequirements or any negotiated bilateralagreement targets for industries as a whole, byactively managing their energy use over time.In order for industry to make significant gains inenergy efficiency, there must be greaterawareness and knowledge sharing aboutprograms, resources, and practical methods thatcan help industrial plants identify, develop, anddocument energy efficiency improvements andtheir economic benefits. Technologies commonto many industries offer opportunities to increaseefficiency. Significant knowledge sharingopportunities exist across firms and industries inthe areas of combustion, industrial distributedenergy, energy-intensive processes, fuel andfeedstock flexibility, materials, sensors andautomation, and combined heat and power.The development of a national standard forindustrial energy efficiency is currently underway. The Superior Energy Performance (SEP)partnership is a collaboration of industry,government, and non-profit organizationsseeking to improve the energy intensity of U.S.manufacturing through a series of initiatives,most notably, by developing the standardizedPlant Certification program. 47 The developmentof this American National Standards Institute(ANSI) accredited standard will help individualcompanies certify energy efficiencyimprovements, independently verify resultingenergy savings, receive public recognition forachievements, and "raise the bar" for industrialenergy efficiency overall. 48 Building on the ANSIstandards, the SEP partnership is also helpingto coordinate US participation in thedevelopment of an international ISO energymanagement standard. A representative fromPG&E has been selected as the lead on thenational ANSI effort, which positions Californiato play a critical role in the development of thisimportant national and international standard.California‘s engagement in the partnershipwould ensure that the elements of thecertification program, including the monitoringand verification methodology, are compatiblewith other California industrial energy efficiencyand GHG emission reduction programregulations.By participating in a recognized national effort tocertify industrial facilities for energy efficiency,California will be assisting its industries to:• More easily reach their GHG emissionreductions targets via a supported,structured program based on provenbest practices;• Develop wide market recognition fortheir efforts through third-partycertification, thus increasing globalcompetitivenessINDUSTRIAL SECTOR SECTION 4 – PAGE 43


• Ensure corporate attention to a uniformnational approach; and• Provide a tangible way to encouragegreater energy efficiency through theirsupply chain.Programs such as those offered through DOE‘sIndustrial Technologies Program (DOE/ITP) andEPA could provide substantial cost-shareopportunities and in-kind assistance, especiallyif linked to certification.To meet the near-term needs for a branding andcertification program, California industries musthave ready access to highly-skilledprofessionals who are trained in energymanagement and systems efficiency. Key areasinclude training industry professionals(consultants, plant engineers, and equipmentsuppliers) to provide energy managementassistance, in-depth system assessmentservices, and in later phases, multi-resourceutilization assistance, including waste reduction,water efficiency and air quality. California canleverage the workforce training element of theSEPP program to achieve this goal.Strategies2-1: Participate inDOE/EPA’s nationalPlant EnergyEfficiencyCertificationProgram (E 2 )2-2: Implementcertification2-3: Develop andimplementworkforce trainingprogram (integratedwith nationaltraining effort)2-4: Create trackingand scoringsystems to measureresource efficiencyimprovements(integrate w/ nat’leffort)2-5: ImplementME&O program toeducate industryand consumersGoal 2: Certification Program for Continuous ImprovementNon-CPUCPartnersDOE/EPASEPP participantsUtilitiesIndustryE 2 ProgramUtilitiesIndustryE 2 ProgramWE&T Task ForceUtilitiesIndustryUniversitiesUtilitiesIndustryME&O Task ForceUtilitiesIndustryImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Participate in planning processPlan pilot and recruit host sites(8-10 facilities).Implement and analyze pilotsAdopt the national curriculumfor certificationConsider curriculumenhancements for awarenessleveltraining on integratingenergy efficiency into theworkplace and developing anew curriculum to fast track forfuture energy managementprofessionalsBegin pilot courses with keyindustry segmentsDevelop systems.Implement on test basis.Form industrial collaborationmechanismsDevelop planIf successful,launch broaderprogram for priorityindustry segmentsExpand to widerindustry segmentsModify and roll-outto industrysegments on aphased schedulestatewideCoordinate withME&O programLaunch w/ priorityindustry segmentsLong Term2016 − 2020Refine and obtainwidespread industrialenrollment andcertificationsExpand to industriesstatewideMaintain and updatecurriculumMaintain and improvesystems based onfeedbackModify and roll-outstatewide on a phasedscheduleMaintain and improvesystems based onfeedbackINDUSTRIAL SECTOR SECTION 4 – PAGE 44


Goal 3: Provide centralized technical and public policy guidance for California industrial energyand resource efficiency.The purpose of this goal is to facilitate adoptionof energy efficiency through centralized andeasily accessed information and resources.Industrial facilities are not just large buildingsthat can be effectively served by uniformprograms designed for the commercial sector.The principal use of energy in industrial facilitiesis to create proprietary products or transformmaterials. Most industrial facilities havemanagement systems in place for materials andlabor but many are still lagging on optimizingenergy or resource utilization. The goal is toprovide a single clearinghouse of technical andresource management regulatory assistancethat industries can use for more effectiveutilization of energy and environmentalresources. Ideally, there would be a singlesource of knowledge that builds on and fills inthe gaps in existing partnerships andrelationships in the industrial sector. The goal isto provide access for industrial personnel andservice businesses to technical information thatcan be applied in a practical way to industryneeds.The clearinghouse will also include informationon emerging technologies, and industry-specificresearch. The clearinghouse will leverageknowledge developed through otherorganizations, including DOE and EPA. Bothagencies have developed extensive expertise inindustrial energy efficiency through a host ofindustry-specific programs and partnerships,including a Data Center Efficiency programunder DOE‘s Save Energy Now initiative andLaboratories for the 21st Century (Labs21) apartnership program co-sponsored by DOE andEPA. 49Strategies3-1:Compile technicaland resourcemanagementregulatory materialsinto centralizedassistance repositoryGoal 3: Single ClearinghouseImplementation Plan and TimelineNon-CPUCNear TermShort TermPartners2009 – 20112012 − 2015UtilitiesInventory existingUpdate andIndustrysources for technicalexpand industryAssociationsand regulatorysegmentassistance for industrial coverage asenergy efficiency and neededother environmentalExtend to GHGresource targetsand waterIdentify and incorporatepriority energy and otherdataDevelop clearinghouseor integration systemMedium Term2016 − 2020Extend info to includewaste disposal and airquality3-2: Conduct statewidemarketing andeducation effort tocreate demand forIndustrial InformationclearinghouseUtilitiesIndustryAssociationsDevelop ME&O Plan.Implement planPublicize resultsof pilotsExtend statewideUpdate and maintainINDUSTRIAL SECTOR SECTION 4 – PAGE 45


5. AGRICULTURAL SECTOR5.1 VISIONEnergy efficiency will support the long-term economic andenvironmental success of California agriculture.5.2 PROFILEThe agricultural sector accounts for about 7 percent of California‘s overall energy, 50 a similar percentageof its private sector jobs, and around 1.5 percent of the gross state product. In terms of energy efficiency(and renewable energy), this sector has seven key end-use subsectors:• Irrigated Agriculture• Dairies• Refrigerated Warehouses• Vineyards & Wineries• Greenhouses & Nurseries• Post-Harvest Processing (on and nearframe)• Confined Animal Feeding Operations(feedlots)Energy consumption in the agricultural sector is concentrated in three end uses: irrigation, process heatapplications, and refrigeration. Of these end uses, irrigation pumping accounts for 80 percent of electricenergy use in the agricultural sector and has average pumping efficiencies of only about 53 percent.Opportunities, barriers, and uncertainties that affect the success of energy efficiency in this sector include:• Continuing consolidation of farming intoagribusiness enterprises, concentratingdecisions affecting energy consumptionin the hands of fewer decision makers.• Agricultural operators relying oncommodity-specific and often localnetworks for information ontechnologies, practices and programs.• Lack of up-to-date, statewide, segmentspecificdata on energy consumptionand the potential for energy efficiency(and renewable generation) across thesector.• Reluctance to accept higher first costsrequired to realize longer-term financialbenefits, and to bear production risksassociated with emerging or unproventechnologies and practices.• Continuing rapid evolution ofregulations - including newrequirements of the state WaterResources Control Board and RegionalWater Quality Controls Boards, and theAir Resources Board and Regional AirQuality Control Boards, - that have nocompliance coordination and which canslow the impetus to adopt energyefficiency technologies and practices,as well as the unknown structure of theAB 32 regulatory scheme.• Expected reductions in surface watersupplies due to climate change that willincrease demand for energy-intensivegroundwater pumping, making energyefficiency both critical and costcompelling.Beyond energy efficiency, agriculture offers a unique opportunity to integrate on-site renewable energy inthe form of biomass from agricultural field crop residues and biogas from animal wastes from dairy, cattle,AGRICULTURAL SECTOR SECTION 5 – PAGE 46


and poultry farms. While this overall resource management opportunity is highly important, this first Planhas not been able to focus specific attention on renewable energy.5.3 GOALSGoals1. Establish and maintain a knowledge base sufficient tosupport development of all available, cost-effective,reliable, and feasible energy efficiency, demandreduction (and renewable) energy resources.2. California regulations, financing mechanisms, andincentives programs affecting the management ofenergy, air and water resources, solid waste, andclimate change will be coordinated to mutualadvantage.3. Achieve significant increases in the efficiency ofelectricity and natural gas use and on-site renewableenergy utilization.5.4 STRATEGIESA central challenge to achieving broader energyefficiency in the agricultural sector is elevatingenergy as a business priority. Demonstratinghow energy efficiency contributes to increasedcompetitiveness or profitability and tocompliance with environmental requirements(e.g., impending AB 32 regulations) will beessential.The overall strategic approach will be to focuson the largest energy end users first, while alsocapitalizing on consolidating companies andentities that address energy decision makingwithin the sector. The initial emphasis will be onthe most energy intensive end uses—irrigation,process heating and refrigeration. However, thisemphasis will be supported by an integrated―whole farm‖ approach that evaluates andaddresses energy resource managementcomprehensively.Strategies will expand to target progressivelysmaller energy consumers, especially earlymovers and opinion influencers. Success storiesfrom both large- and smaller-scale agriculturalenterprises will be widely disseminatedthroughout the sector to build both awareness ofand enthusiasm for whole farm approachestargeting energy efficiency.Goal ResultsBy 2015 California agriculture will develop and implementaction plans, best practices and educational infrastructure tosupport ongoing improvements in irrigation, refrigeration andprocess heating efficiency, demand response, and renewableenergy production.By 2010, key stakeholders will develop a roadmap foragricultural regulatory and incentives coordination. By 2012,the goals, program designs and funding of such programs forenergy, air and water improvements will be fully coordinated.California agriculture will reduce production energy intensityby 15 percent from 2008 levels by 2020 for non-renewableenergy.Success in carrying out these strategies willrequire the collaboration and active engagementof numerous stakeholders. Among stateagencies, key players will be the Department ofFood and Agriculture (DFA), Department ofWater Resources (DWR), the EnergyCommission, and others. At the federal level, theDepartment of Agriculture (USDA) and theBureau of Reclamation are significant players.The agriculture industry associations obviouslywill be leaders in this effort, supported byeducational institutions, the USDA CooperativeExtension service, and the investor-owned andpublicly-owned utilities serving agriculturalenergy users. Local government agriculturalcommissioners' offices likely will drive some ofthe marketing education and outreach efforts intandem with the statewide ME&O Task Force.Agricultural sector stakeholders have identifiedthe single highest priority is to conduct baselinestudies to understand the energy usage patternsin California‘s agricultural sector, forecast likelychanges in the future, determine the energyefficiency potential in the seven sub-energysectors, and evaluate the cost-effectiveness ofmeasures and programs, best practices, etc.Without this basic information, it is impossible todesign a cohesive strategy to pursue all costeffectiveenergy efficiency in California.AGRICULTURAL SECTOR SECTION 5 – PAGE 47


Two additional items are central to the success of all three goals:1. Marketing, Education and Outreach:There must be a defined, comprehensive,long-term marketing, education, andoutreach program to inform the agriculturalsector and consumers regarding the goaland key strategies.2. Workforce Training: There must be astatewide focus on the workforce needs toachieve the goal, with adequate funding andsupport for development of the neededworkforce.5.5 IMPLEMENTATION PLANGoal 1: Establish and maintain a knowledge base sufficient to support development of allavailable, cost-effective, reliable, and feasible energy efficiency, demand reduction (andrenewable) energy resources.Absent a better understanding of the current andforecasted energy use in California‘s agriculturalsector, energy efficiency potential, successesand failures to date, it will be impossible toimplement significant energy efficiency in thissector, much less provide the cost-savingopportunities that energy efficiency offers.Therefore, the single most important step –which is needed immediately – is to conductenergy use and efficiency potential studies thatwill provide critical information on a statewidebasis.Once developed, this information must beaccessible to agricultural professionals andoperators through appropriate education,training, and field-based extension activities.This will require a needs assessment, followedby development of curricula, training modules,and supportive tools that can access andleverage the content of the newly createdknowledge base. Trained and experiencedadvisors and farm operators can then bedeveloped and recognized for their knowledge inhow to apply efficiency and resource solutions toindividual agri-business operations.The search for solutions will not stop withexisting technologies and practices. There willbe a focused effort to develop new technologiesand applications that can help achieve multipleresource management goals. For example,opportunities exist to leverage knowledge fromthe industrial sector to apply to key processesdriving energy consumption in the agriculturalsector – such as for pumping, boiler operationsand refrigeration. Another strategy will be bettercoordination of knowledge being developed bythe federal and state agricultural and energyresearch programs, agricultural equipmentmanufacturers, utility promotion of emergingtechnologies, and agricultural extensionprograms to individual farms and productionfacilities.AGRICULTURAL SECTOR SECTION 5 – PAGE 48


Goal 1: Energy Efficiency Knowledge Data BaseImplementation Plan and TimelineStrategies1-1: Developknowledge base ofefficiency solutions1-2: Ensureworkforce hasinformation andtraining necessaryto apply efficiencysolutions1-3: Conductresearch &development of newtechnologies andpractices foragriculturalefficiencyNon-CPUCPartnersUtilitiesCDFADWRAgricultureIndustryUtilitiesWE&T TaskForceEducationalInstitutionsAgriculturalindustryEnergyCommissionUtilitiesNational LabsAgricultureIndustryNear Term2009 – 2011Conduct an energy usecharacterization and efficiencypotential study for the statewideagricultural market. Include potentialfor waste streams to offset energyconsumption. Study plan (6/2009)and study completed (12/2010)Collect data on key programs andmeasures, best practices for energyefficiency in the agricultural sector.Study complete (6/10)Conduct workforce training needsassessment and next steps(12/2010)Develop training curricula andmodules identified by needsassessment. (12/2011)Conduct an Energy Technologies/RD&D gap analysis. Identify andprioritize needed RD&D/ET projects.(12/2011)Coordinate research activities acrossgovernment, utilities, agriculturalextension and university programs,and equipment manufacturerproprietary effortsMid Term2012 − 2015Develop frameworkfor commonagricultural data baseEstablish centralclearinghouse fortechnical, program,regulatory, andincentive informationDevelop training andeducation tools foruse of date base andbenchmarkingmethodsBegin pilot training &education programsOngoingidentification,prioritization andexecution ofET/RD&D projectsLong Term2016 − 2020Ongoing refinementand maintenanceTraining &education activitiesare fully rolled-outCertificationprograms are inplaceOngoingidentification,prioritization andexecution ofET/RD&D projectsGoal 2: California regulations, financing mechanisms, and incentives programs affecting themanagement of energy, air and water resources, solid waste, and climate change will becoordinated to mutual advantage.The agricultural sector is subject to water use,water quality, air quality, solid waste, and soonglobal warming requirements. Energy efficiency,particularly when linked to water conservation,can be a key strategy to achieve goals in theseother areas. Yet there is currently nocoordination at the state, local or federal level tooptimize the use of energy efficiency in meetingmultiple resource objectives.A multitude of programs – currentlyuncoordinated – operate in the agriculturalsector that address the sector‘s use of energy,air and water. Better coordination of theseprograms would lead to enhanced use of energyefficiency as a successful strategy to implementthe goals across all programs. Specificprograms warranting coordination are: waterconservation and quality improvement funding,Energy Commission PIER funds, local air qualityimprovement funds, federal tax credits, RuralEnergy for America Program (REAP) under theFederal Food, Conservation and Energy Act of2008 (Farm Bill) and utility energy efficiency andrenewable energy incentives.One of the most important goals for agricultureis to develop a forum or process involvingmultiple stakeholders to coordinate technicalenergy efficiency solutions and program designs(e.g., knowledge bases, technical assistance,financing, and financial incentives) across therange of environmental management policiesand goals.AGRICULTURAL SECTOR SECTION 5 – PAGE 49


Strategies will include:• Integrated Resource Management:Setting up a common framework forresource management that can betterleverage and ―piggyback‖ multiple resourcemanagement programs to supportincreased adoption of energy efficiency,demand response and onsite generationopportunities integrated with efforts to attainair, water, and solid waste objectives.• Financing: Developing common technicaland financial assistance energy efficiencystrategies most appropriate in theagricultural sector for achieving specificprogram objectives (e.g. deciding amonggrants vs. loans vs. rebates; structuringfinancial programs sensitive to preferencesbetween traditional financing vs.performance contracting; and utilizingtechnical assistance advisors and expertiseto deliver integrated solutions acrossmultiple objectives).________________________________________The ultimate goal of this Plan is to provide ―onestop-shopping‖assistance to both programsponsors and the agricultural operators targetedby energy, air and water programs. This willassist program sponsors in tailoring theirprograms to the unique needs and preferencesof agricultural operators, and prospectiveprogram participants in understandingopportunities, requirements and how toefficiently participate in programs.A task force including representatives of allmajor sources of agricultural expertise,financing, and incentives targeting energy, air,water and solid waste concerns is envisioned asthe mechanism for implementing the strategy.The task force will provide both a forum foralignment and leveraging of program goals,designs and funding, and a clearinghouse forprogram information and coordination. TheCalifornia Department of Food and Agriculture(CDFA) is developing a California AgriculturalVision through 2030, which may provide a usefulopportunity to launch this forum. 51The immediate focus of the task force will be onidentifying and mitigating existing conflicts inprograms operating across energy, air, waterand solid waste concerns within the agriculturalsector.Goal 2: Coordination of Programs and FundingStrategies2-1: Setobjectives andframework foragriculture toattain multiresourcemanagementgoalsNon-CPUCPartiesUtilitiesCDFADWRIndustryparticipantsImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Establish a task force tocoordinate resourcemanagement policies, actiongoals, and program designstargeting California’sagricultural sectorIdentify where goal conflictsarise and resolve theseconflictsAssess potential for integratedapproachesEstablish a central databaseto track and coordinateresource policies andinitiativesUndertake pilot integratedapproachesRefine program designs andsupport based on experienceLong Term2016 − 2020Continue to modify andrefine approaches forintegrated solutionsAGRICULTURAL SECTOR SECTION 5 – PAGE 50


Strategies2-2 Coordinatetechnicalassistance,funding, andincentivemechanismsNon-CPUCPartiesFinancing TaskForceUtilitiesFinancialInstitutionsAgricultureIndustryImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Identify the programs and majorfunding sources affecting themanagement of energy, air andwater resources, and climatechangeCreate a collaborative forum tofacilitate sharing of informationand coordination of programsIdentify approaches to crossmarketand leverage resourcemanagement goals acrossprograms, funding, andtechnical assistanceLong Term2016 − 2020Continue to modify andrefine approaches forintegrated solutionsGoal 3: Achieve significant increases in the efficiency of electricity and natural gas use and onsiterenewable energy utilization, including setting a specific target for irrigation efficiency.Because irrigation accounts for 80 percent of the electricity used in the agricultural sector and currentpumping efficiencies are so low, a specific goal targeting improvement in this area is warranted. Twoother areas that warrant specific focus are higher efficiency with refrigeration and process heating fromnatural gas.Strategies needed to achieve this goal include identification and adoption of management best practicesand highly efficiency equipment. Specific areas of focus will include targeting energy efficiencyopportunities from:• Onsite source-water reduction• Retro-commissioning• Precision agriculture• Advanced irrigation systems• Pressure reduction in irrigation• Waste heat recovery and other gassavingsmeasures• Improved industrial refrigerationpractices and technologies.________________________________________________One of the emerging energy efficiency practicesto guide end users in their efficiency actions isthe use of ―benchmarking‖. This requiresdeveloping a best practice standard andsupporting systems that enables individual endusers to analyze their energy usage comparedto the benchmark. Development ofbenchmarking tools for each agricultural subsector– starting first with the irrigated agriculturesubsector and then expanding to othersubsectors – would be an important strategy inidentifying profitable opportunities for efficiencyimprovements.Achieving real savings in agriculture will befounded upon a compelling business case todecision-makers in agricultural sub-sectors andindividual companies. The strategy will identifythe most effective communication channels,partners, and messages to deliver to thesedecision-makers.Recognizing that irrigation accounts for thepredominant share of electricity, both on-farmand in the statewide delivery of water, pilotprograms and evaluation will be used to identifythe embodied energy savings associated withwater efficiency gains. This will be a critical stepin linking energy and water efficiency strategies.AGRICULTURAL SECTOR SECTION 5 – PAGE 51


Strategies3-1 Make informationon efficiency solutionsreadily available tomotivate efficiencyimprovements3-2 Conduct marketing& outreach to stimulateefficiency actions3-3 Resolve metrics forembedded energy inwater savingsNon-CPUCPartnersUtilitiesAgriculturalIndustryME&O Task ForceUtilitiesAgricultureIndustryState wateragenciesAgricultureIndustryEnergy and WaterutilitiesGoal 3: Capturing Energy EfficiencyImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Develop benchmarkingresources, tools and methodsfor the agricultural sub-sectors.Design and launch focusedprogram for irrigation efficiency,refrigeration, and processheatingDevelop ME&O strategy,addressing communicationchannels, partners, andeffective messagingBegin pilot implementationUpdate evaluationmeasurement & verificationprotocols to define energyimpacts of water efficiencyactionsDesign and conductappropriate water/energyefficiency pilots for agricultureApply feedback andrefine benchmarkingtoolsExpand programs towider audience andpromising end usesLaunch statewideprogramMeasure and reportall embeddedenergy savingsassociated withirrigation andprocess efficiencyIncorporate findingsinto business casemessages andpolicies for waterand energyefficiencyMedium Term2016 − 2020Ongoing refinementand maintenanceOngoing refinementand maintenanceOngoing applicationto policies andprogramsAGRICULTURAL SECTOR SECTION 5 – PAGE 52


Dwelling Units197019741978198219861990199419982002200420086. HEATING, VENTILATION AND AIR CONDITIONING6.1 VISIONThe residential and small commercial heating,ventilation, and air conditioning (HVAC) industry willbe transformed to ensure that technology, equipment,installation, and maintenance are of the highestquality to promote energy efficiency and peak loadreduction in California’s climate.6.2 PROFILEOne of the BBEES adopted by the Commissionin October 2007 is to ―reshape residential andsmall commercial HVAC to ensure optimalequipment performance.‖ 52 This initiative targetsa 50 percent improvement in efficiency in theHVAC sector by 2020, and a 75 percentimprovement by 2030.The rapid growth in air conditioning inCalifornia‘s commercial buildings and homeshas made it one of the state‘s largest energyconsumingend uses and the single largestcontributor to peak demand—and a leadingopportunity to improve energy efficiency andreduce peak power demand.In 1976, 25 percent of new California homes hadcentral air conditioning. Today, it is 95 percent:new home size has increased by more than 50percent and new homes are concentrated in hotinland communities. These increases haveresulted in a greater than seven-fold increase inthe electricity capacity to meet this load.By 2006, peak demand for residential airconditioning units was 14,316 MW. When smallcommercial air conditioning is added to theresidential share, air conditioning loads causeover 30 percent of California‘s total peak powerdemand in the summer—with an enormous andcostly impact on the need for generation,transmission, and distribution resources and aconcurrent lowering of utility load factors.Growth in Residential Dwellings with Central Air Conditioning- Single Family and Multi Family Units from 1970 to 20076,000,0005,000,0004,000,0003,000,0002,000,0001,000,000HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 53


Unfortunately, as air conditioning was becomingnearly ubiquitous in new California buildings,installation and maintenance practices sufferedsubstantially. The HVAC industry has struggledto provide qualified technicians, and marketconditions rarely value quality installation andmaintenance (QI/QM). Less than 10 percent ofHVAC systems obtain legally required preinstallationlocal building permits and 30-50percent of new central air conditioning systemsare not being properly installed. As a result,Californians pay a large price for the lack ofquality installation and maintenance, withcommensurate poor performance. The factorsthat have led to a 20-30 percent increase in thepeak energy needed to provide consumers withthe cooling and comfort they demand on hotsummer afternoons 53 has been accompanied byan estimated 30 percent increase in carbonemissions.AB 2021 (Levine, 2006) required the EnergyCommission to investigate options and developa plan to improve the energy efficiency of, and todecrease the peak electricity demand of, airconditioners.‖The Energy Commission‘ssubsequent report, ―Strategic Plan to Reducethe Energy Impact of Air Conditioners‖, 54estimated potential cumulative savings fromhigher quality installation in the residential andsmall commercial markets at 1,216 GWh and1,096 MW by 2020. The estimated cumulativesavings from accelerated introduction of moreefficient and properly installed coolingtechnologies is 1,272 MW and peak shiftingtechnologies is 2,299 MW by 2020. The contentof this chapter draws heavily from the CECreport, and the strategies set forth in this planmirror those of the report‘s recommendations.HVAC is regulated in California by the Energy Commission‘s Title 20 and Title 24 appliance and buildingcodes and by federal appliance standards. These codes and standards have become increasinglystringent in recent years, along with related activities such as the promotion of Energy Star-compliantunits. But numerous barriers reduce the effectiveness of the codes and standards including:• The federal standards use a single,national air conditioning metric thatdoes not robustly measure—nevermind promote—the performance of airconditioners in hot, dry conditions suchas California.• Federal law pre-empts California‘sability to set its own air conditioningefficiency standards. 55• Consumer markets focus on lowest firstcost, and ignoring operating costs,6.3 GOALSmaking it difficult for quality contractorsto compete.• Installation and maintenance practicesare inadequate, driven by costcompetition and the ―invisibility‖ ofquality work to consumers.• Building design practices do not takean integrated systems approach tolessen the size or need for HVAC.Goal1. Consistent and effective compliance, enforcement,and verification of HVAC-related building andappliance standards.2. Quality installation and maintenance becomes theindustry and market norm.3. Whole building design and construction practices fullyintegrate building performance objectives to reducecooling and heating loads.4. New climate-appropriate HVAC technologies(equipment and controls, including system diagnostics)are developed with accelerated market penetration.Goal ResultsHVAC-related permits are obtained for 50% of installations by2015 and 90+% by 2020.By 2020 100% of systems are installed to quality standards andoptimally maintained throughout their useful life.Integrated design and construction practices are standardpractice by 2020.At least 15% of equipment shipments are optimized forCalifornia’s climate by 2015 and 70% by 2020.HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 54


6.4 STRATEGIESTo achieve the Commission‘s adoptedProgrammatic Initiative of transforming theHVAC market and the four specific goalsidentified above, broad-based and aggressivestrategies are needed that involve manystakeholders beyond the Commission and IOUs.An HVAC Advisory Group should be charteredto involve high-level HVAC industrystakeholders—such as manufacturers,distributors, and contractors—to coordinateindustry sponsorship of and participation inHVAC strategies. Membership should alsoinclude other key players, such as the CPUC,Energy Commission, utilities, local buildingofficials, building owners/managers, consumers,and the federal government.6.5 IMPLEMENTATION PLANGoal 1: Consistent and effective compliance, enforcement, and verification of applicable buildingand appliance standards.California law requires contractors to obtain apermit for the installation of new HVACequipment (including replacements of existingequipments) and to perform quality controlchecks. Yet fewer than 10 percent ofcontractors obtain such permits, perform qualitycontrol checks, or have their work verified bythird-party raters. Failure to ensure quality at thetime of cooling system installations results in a20 to 30 percent increase in the peak energyneeded by systems.This problem is exacerbated by Title 24provisions that allow optional compliance withHVAC quality control requirements; a contractormay install higher efficiency measures in a newbuilding in lieu of the quality installation andcontrol requirements, absent any performanceverification. The Air Conditioning Contractors ofAmerica (ACCA) recently developed a qualityinstallation (QI) specification for air conditioningequipment that has become an AmericanNational Standards Institute (ANSI) standard. Itis comprehensive, addressing all aspects ofHVAC quality installation, including equipment,installation and ducts. The EnergyCommission‘s June 2008 HVAC reportrecommended that the Energy Commissionconsider making the ACCA or similarrequirements mandatory for all HVACinstallations, in lieu of Title 24‘s current optionalrequirement. Energy Commission action tochange its optional standards to mandatoryquality control provisions is critical.Changing the status quo will require significanteffort, since contractors who comply with HVACcode provisions incur higher costs that aredifficult to pass onto customers in a highlycompetitive market. Such contractors may alsoexperience delays due to local governmentpermit timelines. Local building officials may nothave the resources or knowledge to establishstreamlined permitting systems to supportquality HVAC installations or penalizecontractors who do not comply.Strategies to achieve significantly improved compliance include:• Permitting Reform. Streamlining localgovernment permitting and state licensingprocesses, beginning with pilot programs.• Mandatory Requirements. Changing thebuilding code by replacing the currentoptional quality control requirements withmandatory requirements.• Verification. Improving the currentprocesses for inspecting and verifyingcompliant system installations, such astracking the installation of all new andreplacement equipment to ensure they areinstalled in compliance with all applicablestate energy codes, or developing lower-costcompliance verification mechanisms.• Enforcement. Actively enforcing penaltiesfor contractors who do not pull requiredpermits or who operate without theappropriate licenses.HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 55


Strategies1-1: Develop streamlinedlocal government HVACpermitting systems,including on-line HVACreplacement permitting1-2: Streamline processfor obtaining andoverseeing contractorbusiness licenses1-3: Replace Title 24’scurrent optional qualitycontrol requirements withmandatory requirements(ACCA/ANSI QI/QMspecification)1-4: Develop affordablestandards and qualitycompliance solutions1-5: Enforce penalties forcontractors who do notpull permits or operatewithout the appropriatelicenseNon-CPUCPartnersLocalGovernmentsCALBOUtilitiesDistributorsContractorsLocalGovernmentsCALBOCalif. ContractorState LicenseBoardEnergyCommissionACCA/ANSIUtilitiesContractorsUtilitiesLocalGovernmentsCALBODistributorsContractorsLocalGovernmentsCA ContractorState LicenseBoardContractorsUtilitiesGoal 1: Improve Code ComplianceImplementation Plan and TimelineNear Term2009 – 2011Convene an industry/localgovernment stakeholdergroup; develop proposed newsystem; pilot test with localgovernmentsPilot test streamlined processwith local buildingdepartmentsExplore possible commonbusiness licenses for multiplejurisdictionsAdopt ANSI standards intoTitle 24; integrate into existingutility program designsConvene stakeholder group;develop details of proposedsystem and determinewhether to proceedConsider developing aninternet-based system thattracks the status ofequipment, from the initialsale to final quality check inthe fieldPilot test local governmentfines in lieu of contractorlicense suspension; expandSMUD program to IOUs(proof of quality installationreq’d for rebate); identify localgovn’t resources needed forenforcement; establish actionplan to phase-in mandatoryenforcementMid Term2012 − 2015Revise pilots and expand toother cities; developframework for statewideprogramRevise pilot and expand pilottesting to other cities; developframework for statewideprogramExplore steadily higher QI/QMstandards as baselinebecomes commonplaceIf recommended fordevelopment; pilot testExpand pilot programs;Continue phase-in ofmandatory enforcementactivitiesLong Term2016 − 2020ExpandstatewideExpandstatewideOngoingExpandstatewide if pilottesting issuccessfulFully implementmandatoryenforcementGoal 2: Quality HVAC installation and maintenance becomes the norm. The marketplaceunderstands and values the performance benefits of quality installation and maintenance.Quality HVAC installation and maintenance(QI/QM) is currently the exception, not the norm.Achieving this goal will require a majortransformation in both markets and behavior.Consumers need education on the value ofproperly installed and maintained systems inorder to demand quality installations, and theservice industry needs proper education,HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 56


training, and certification to then meet consumerdemand.Beyond Strategy 1-3 under Goal 1 above, alogical next step is to develop a label that wouldbe attached to residential or small commercialHVAC installations by a third-party rater.Even before a change in the Title 24requirements occurs, a statewide brand programcould be developed to benchmark and recognizeand/or certify quality installation andmaintenance and high levels of HVACtechnician competence. This effort could beconducted by California alone, with othersouthwestern states, or on a national basis. Thebrand would be used in at least two ways: (1)affixed to equipment to certify the equipment hasbeen installed pursuant to QI/QM requirementsand, (2) made available to contractors whovoluntarily ensure a high proportion (perhaps 90percent) of their workers have received highqualitycertification from North AmericanTechnician Excellence or other industry groups.This branding effort could be tied to utilityprograms, such that only customers orcontractors who use the brand receiveincentives.A consumer marketing and education campaignabout the value of HVAC QI/QM can introduceand stimulate the demand for the new brand—communicating that quality work results inincreased comfort, improved air quality andhigher energy and cost savings. Developmentand launch of the quality brand should besupported with the appropriate level ofbehavioral studies to assess the markettransformation impacts of the brand and ensurethat utility incentives linked to use of a statewidebrand are effective in changing consumer andcontractor behavior.A necessary concurrent strategy is thedevelopment of adequate workforce educationand training for HVAC contractor/owners,service and installation technicians, salesrepresentatives and building officials. Thisrequires a comprehensive needs assessment toidentify industry skill gaps and form the basis ofan effective action plan to address these gaps.After this assessment is completed, supportshould be provided to certify new trainers andcourses and provide incentives directly totechnicians who complete training.Strategies2-1: Create a statewide QualityInstallation and Maintenance(QI/QM) brand that will beattached tosystems/installations/contractors that meet qualitystandardsGoal 2: Quality HVAC Installation and MaintenanceImplementation Plan and TimelineNon-CPUCNear TermMid TermPartners2009 – 20112012-2015ME&O TaskCreate and launchOngoingForcestatewide quality brandUtilitiesand/or align with nationalHVAC industrybrandRetailersDevelop operating andlifecycle data oneconomic and comfortbenefitsLong Term2016 − 2020Ongoing2-2: Launch a consumermarketing and educationcampaign to support the brandand stimulate market demandUtilitiesHVAC industryRetailersLocalGovernmentsDevelop and launchcampaignConduct ongoingbehavioral studies toensure strategies areeffectiveConduct ongoingbehavioralstudies to ensurestrategies areeffectiveHEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 57


Strategies2-3: Develop and provideexpanded QI/QM training forcontractors, technicians andsales agents2-4: Develop and implementcomprehensive contractoraccreditation programImplementation Plan and TimelineNon-CPUCNear TermMid TermPartners2009 – 20112012-2015WE&T TaskForceUtilitiesHVAC IndustryEducationalinstitutionsLabor UnionsCSLBNATEHVAC IndustryEnergyCommissionLabor UnionsCSLBWE&T TaskForceEducationalinstitutionsNATEConduct comprehensivetraining needsassessment to indentifyindustry skill gaps; beginexpanded trainingprogramsDevelop accreditationprogram requirements;begin implementationAssess impact oftraining activities andupdate needsassessment asrequiredExpand trainingprograms statewide,particularly at thevocational/technicaland communitycollege levelsExpand programLong Term2016 − 2020OngoingStatewidecertificationprogramGoal 3: Building industry design and construction practices that fully integrate buildingperformance to reduce cooling and heating loads.Both the Residential and Commercial SectorChapters address the need for ―whole building‖design and implementation in California, in orderto achieve truly aggressive energy efficiencysavings. One key goal of this overall effort mustbe building performance that improves spaceconditioning, by dramatically reducing coolingand heating loads. Fundamental changes willbe needed in current design and buildingpractices.Specific design and building changes addressing HVAC performance include:• Placing more emphasis on the wholebuilding as a complete interactivesystem and improving the thermalintegrity of the building shell to reduceheating and cooling loads.• Moving ducts and equipment off theroof and out of hot attics.• Incorporating ductless systems, radiantheating and cooling, ground sourceheat pumps and thermal energystorage technologies with overall higherefficiencies.The Residential and Commercial Sector Chapters address behavioral change strategies to promotewhole building design and implementation. Those strategies must include a focus on the HVAC industryin particular.HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 58


Strategy3-1: Aggressivelypromote wholebuilding designconcepts thatimprove the overallthermal integrity ofnew and existingstructures3-2: Accelerateactivities related toHVAC aspects ofwhole buildingindustry designstandards3-3: AccelerateHVAC relatedaspects of wholebuilding design inthe educational andprofessionalcommunities3-4: Acceleratecode-basedsolutions toimproving thethermal structuralintegrity andincorporatingalternative coolingmethods intobuilding designs3-5. Sponsor designcompetitions toencourage buildersto design and buildhomes with zero netpeak demandsNon-CPUCPartnersCECHVAC industryArchitectsBuilders andContractorsUtilitiesLocal GovernmentsASHRAEEnergy CommissionUtilitiesManufacturersAHRIColleges/UniversitiesUtilitiesDepartment ofEducationEnergy CommissionLocal GovernmentsUtilitiesUtilitiesFoundationsIndustryBuilders andContractorsGoal 3: Whole-Building DesignImplementation Plan and TimelineNear Term2009 – 2011Pilot targeted programs.Incorporate radiantcooling, ductless systems,ground source heatpumps, etc. into 5% ofnew and existingconstruction by 2011Review priorities of PIERand EmergingTechnologies programactivities to more fullysupport newer HVACtechnologies and systemsEvaluate and updateexisting standards toinclude increasedemphasis on HVACaspects of whole buildingapproaches.Develop continuingeducation programs. Begincurriculum useImplement optional codeimprovements necessaryto facilitate moves towhole building designapproachesConduct first competitionin 2010 and annuallythereafterMid Term2012 − 2015Include standardprogram offerings thatemphasize HVACrelatedelements towhole buildingapproaches. Incorporateradiant cooling, ductlesssystems, ground sourceheat pumps, etc. into25% or more of new andexisting construction by2015OngoingExpand statewide.Develop universitydegree level programsEstablish mandatorywhole building codebasedsolutionsAnnuallyLong Term2016 − 2020Incorporate radiantcooling, ductlesssystems, groundsource heat pumps,etc. into 50% or moreof new and existingconstruction by 2020OngoingOngoingOngoingAnnuallyHEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 59


Goal 4: New climate-appropriate HVAC technologies (equipment and controls, including systemdiagnostics) are developed with accelerated marketplace penetration.Goal 4 requires coordinated development and use of new and improved HVAC technologies (equipmentand controls, including two-way demand response and onboard diagnostics) that are adapted toCalifornia‘s climate zones.The strategies to achieve this goal include:• Develop a regional (southwest)strategy: Because advancedtechnology development and marketpenetration has a regional impact, itwould be advantageous to drawparticipants from other statesexperiencing similar increasing airconditioning loads (e.g., Nevada,Arizona, New Mexico and perhapsTexas). The focus would be onworking with DOE to develop newcooling systems with technology anddesigns that reflect California andsimilar hot/dry climate conditions.• Expand HVAC-related R&D: Pastimprovements in HVAC energyefficiency have been the result of R&Dby the HVAC manufacturers, utilities,government, and academia. Thereneeds to be a new focus on hot dryclimate solutions.• Support incremental improvementsto HVAC equipment. Because highlyadvanced cooling technologies will onlypenetrate small portions of the totalmarket at a time, incrementalimprovements in standard HVACequipment are also necessary,including continued upgrading of codesand standards. Any cost-benefitanalysis for state or federal regulationsmust include on-peak energy resourcevalues and resulting peak-specificstandards.• Commercialize on-board diagnosticsystems: Such systems automaticallycollect data and alert consumers and/orcontractors when a fault or negativeperformance trend is detected. Thesediagnostics will result in energy benefitsby helping ensure that HVAC systemsare maintained and operate withindesign specifications. While manymanufacturers currently offer either ―onboard‖ systems or hand-held ones thatwork with all systems, none are widelyused by consumers or contractors.Actions to accelerate thecommercialization of such diagnosticsinclude:1. Prioritizing in-field diagnostic andmaintenance approaches based on theanticipated size of savings, cost of repairs,and the frequency of faults occurring2. Benchmarking of existing diagnostic, repairand maintenance protocols3. Developing nationwide standards and/orguidelines for onboard diagnosticfunctionality and specifications fordesignated sensor mount locations.4. Aggressive promotion of diagnostic systemsas a standard offering on all HVACequipment.In addition to technology development, a key strategy to achieve this goal is education of contractors andconsumers about the advanced technologies‘ availability and value, as well as education and training ofservice technicians, particularly on the use of diagnostic systems.HEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 60


Strategies4-1: Pursue regional climateoptimized equipmentstandards through DOErulemaking process4-2: Update “Total AvoidedCost Model” and Title 24“Time Dependent Valuation”calculations, including use ofpeak energy values4-3: Accelerate marketpenetration of advancedtechnologies by HVACindustry promotions andupdating/expanding currentutility programs to includethe new technologies asappropriate4-4: Adopt a progressive setof building codes thatsupport the deployment ofpeak efficient equipment4-5: Develop nationwidestandards and/or guidelinesfor onboard diagnosticfunctionality andspecifications for designatedsensor mount locations4-6: Prioritize in-fielddiagnostic and maintenanceapproaches based on theanticipated size of savings,cost of repairs, and thefrequency of faults occurringGoal 4: New HVAC Technologies and System DiagnosticsImplementation Plan and TimelineNon -CPUCNear TermMid TermPartners2009 – 20112012 − 2015DOEUtilitiesNat’l LabsNBIHVAC industryEnergyCommissionUtilitiesUtilitiesEnergyCommissionEnergyCommissionUtilitiesAHRIASHRAEACCAManufacturersUtilitiesTradeAssociationsAHRIASHRAEManufacturersUtilitiesTradeAssociationsAHRIASHRAEDevelop recommendedstandards and present toDOEEvaluate, revise andupdate as needed in stateand federal applicationsConduct a comprehensivecost-benefit analysis ofleading and prospectiveadvanced technologies,and use to prioritize utilityincentive offerings andHVAC industrydeployment strategiesEstablish an incubatorprogram to acceleratecommercialization of mostpromising technologiesEnhance and acceleratethe deployment of Title20/24 codesEstablish an industry-widetask force to developnational standarddiagnostic protocolsBegin implementation.Incorporate into HVACindustry and utilityprogramsBenchmark existingdiagnostic, repair andmaintenance protocolsand develop appropriateproductsRegional climateoptimized standardsadopted by DOEOngoingProvide necessaryprogram incentivesto ensure thatadvancedtechnologiesrepresent 30% ofthe systems sold by2015OngoingIncorporatediagnostic standardsinto equipmentcodes.Commercialize onboarddiagnosticsystemsLong Term2016 − 2020OngoingOngoingContinue to providenecessary programincentives to ensurethat advancedtechnologies represent50% of systems soldby 2020OngoingOngoingIncorporate mandatoryonboard diagnosticsystems in Californiabuilding codesHEAT ING VENTILATION AND AIR CONDITIONING SECTION 6 – PAGE 61


7. CODES AND STANDARDS7.1 VISIONA broad range of aggressive and continually improvingminimum and higher voluntary sets of energy codes andstandards will be adopted to greatly accelerate the widespreaddeployment of zero-net energy and highlyefficient buildings and equipment. The effectiveness ofcodes and standards will be enhanced by improvedcode compliance as well as coordinated voluntaryefficiency activities.The ambitious goals of this Plan as well as greenhouse gas imperatives place an unprecedented relianceon mandatory codes and standards—both on energy codes for new and renovated buildings and onefficiency standards for appliances and equipment—and pressure for them to perform.PROFILEThere is no policy tool more essential for thewidespread and persistent transformation ofenergy performance in California than energycodes and standards. For thirty years, Californiahas aggressively and successfully used its twoprincipal frameworks for regulating minimumenergy performance—Title 24 building energycodes and Title 20 appliance standards 56 —tocost-effectively reduce the energy consumptionof commercial buildings, homes, and appliances.The effectiveness of energy codes andstandards is beyond debate—the EnergyCommission‘s 2007 Integrated Energy PolicyReport 57 finds that: ―California‘s building andappliance standards have saved consumersmore than $56 billion in electricity and naturalgas costs since 1978 and averted building 15large power plants. It is estimated the currentstandards will save an additional $23 billion by2013.‖The appeal of codes and standards forpromoting energy efficiency is simple: they makebetter energy performance mandatory, and notjust for early adopters or self-selectedconsumers but for all users of regulatedproducts and structures.Codes and standards‘ impact, while enormous, can be enhanced and made even more successful andcost-effective if they are:• Capturing a wide range of economicallyviable technologies and buildingpractices, including integrated DSMapproaches.• Coordinated with non-regulatory markettransformation efforts, such as utilityincentives and rebates, Energy Starand other benchmarking programs, andbuilder and consumer education effortsthat pave the way for successivestrengthening of codes and standards.• Optimized with other regulations,especially federal efficiency standards,non-California state efficiencystandards, AB 32, ambient air qualityrules and local governmentdevelopment policies.CODES AND STANDARDS SECTION 7 – PAGE 62


• Applied more comprehensively to enduses, including plug loads and buildingoperations.• Supported by better enforcement andcompliance at local levels.• Reliant on more sophisticated designprinciples and analytics regardingwhole buildings and measures.• Encouraging of building industryplayers to design or manufacture newenergy solutions7.3 GOALSGoal1. Continually strengthen and expand building andappliance codes and standards as market experiencereveals greater efficiency opportunities and compellingeconomic benefits.2. Dramatically improve code compliance andenforcement.7.4 STRATEGIESThe Energy Commission re-visits and tightensTitle 24 energy efficiency codes on a triennialbasis. However, the scale of the goals andchallenges at hand—including that of putting allnew commercial buildings on a path to zero netenergy by 2030, and meeting AB 32‘s emissionreduction targets—prompts an acceleratedstrategy to make the codes more stringent andcover more end uses and measures.The strategies described below pursue bothsides of the codes and standards coin: theydevelop enhanced regulations ―on paper;‖ andthey improve their real world effectiveness, costeffectiveness,and compliance. Although thestrategies place greater emphasis on buildingcodes than on appliance/equipment standards—as the former are principally regulated at thestate level and the latter principally at the federallevel—there is nonetheless a tremendous7.5 IMPLEMENTATION PLANThere is a de facto symbiotic relationshipbetween more stringent codes and standardsand improvements in technology, products andpractices (the former prods the latter, while thelatter helps allow the former) that will need tostrengthen and accelerate in the coming years.More than most other efficiency policy areas,codes and standards demand coordination withGoal ResultsCalifornia’s codes and standards will support this Plan’sresidential, commercial, and HVAC sector goals.Energy savings from codes and standards will be fullyrealized.opportunity for appliance regulation to increaseenergy savings.The Energy Commission is a key leader in thiseffort, along with the California BuildingStandards Commission. The federalgovernment, utilities, research organizations(Energy Commission-PIER, national labs), tradeand professional licensing/registration agencies,the building/developer/contractor/ manufacturersindustry and realtors must work cooperatively todevelop common goals and provide thetechnical support for this effort.These strategies are intentionally presented at ahigh level in this Chapter. The Residential,Commercial and HVAC Chapters providegreater detail on codes and standards goals andstrategies applicable to those sectorsother efforts and parties—from regulators to theregulated—to be optimal. Both the EnergyCommission and the IOUs have played a majorrole in coordination, and must be committed toplaying an even larger role in the future tosupport and/or facilitate future efforts. Suchcoordination has two major components: one,coordinating with other relevant governmentalregulations; and two, coordinating with relevantCODES AND STANDARDS SECTION 7 – PAGE 63


programs, incentives, market dynamics,research and other non-regulatory initiatives.Many other governmental entities can impact theeffectiveness of California‘s codes andstandards. For example, the federalgovernment (i.e., DOE) has primaryresponsibility for appliance/equipmentstandards. Local governments play animportant role, both in the enforcement of Title24 for building construction and renovation andin the development of local ―reach‖ codes thatcan serve as pilots for statewide codes.California‘s newly-adopted Green BuildingStandards along with San Francisco and LosAngeles‘ recent Green Building Ordinances,referenced earlier, represent recent ―beyondcode‖ efforts. These important efforts serve tocontinually ―raise the bar‖ for California‘sstatewide standards. Coordination among such―reach‖ codes and the statewide efforts, as wellas among non-governmental building rating andcertification systems frequently embraced bylocal government development policies, iscritical.Coordination with other programs and laws isalso critical. Codes and standards are morefocused on eliminating inefficient products andpractices than on developing or popularizingnew highly efficient ones. Accordingly, codesand standards should be coordinated with publicand private efficiency programs that develop andcommercialize new products and building designsolutions.While efforts to leverage efficiency investmentsat times of sale and/or major retrofit labeling orother requirements provide importantopportunities for efficiency gains, excessive―trigger‖ requirements can serve as adisincentive to undertaking beneficialinvestments. Interagency collaboration isneeded to identify solutions to such challengesand develop and prioritize action paths towardsCalifornia‘s energy and GHG goals.Strategies1.1: Develop aphased andacceleratedapproach tomore stringentcodes andstandardsNear-Term(2009-2011)Adopt a progressive set ofbuilding codes; including oneor two voluntary “reach” codetiers for residential andcommercial sectorsLower the renovationthreshold at which the codeapplies to an entire existingstructureIdentify local code orordinance opportunities aspilots or where localconditions may supportaccelerated actionGoal 1: Code Enhancement and ExpansionImplementation Plan and TimelineMid-Term(2012-2015)Develop road map for acceleratingTitle 20 standards and Title 24 codesin a “top-down” approachIncrease use of buildingcommissioning requirements for newbuildings and retrofitsIdentify analysis, case study, R&D,and other activities necessary tosupport progressive strengthening ofcodes and standardsLong-Term(2016-2020)Develop “reach”codes for buildingsas “net producers”of energy (ZNE)Codes andStandards requirezero net residentialbuildings by 20202021 − BeyondCodes and Standardsrequire zero net commercialbuildings by 2030CODES AND STANDARDS SECTION 7 – PAGE 64


Strategies1.2: ExpandTitles 24 and 20to address allsignificantenergy end uses1-3: Improvecode researchand analysis1-4: Improvecoordination ofstate energycodes andstandards withother state andfederalregulationsNear-Term(2009-2011)Expand Title 20 to coveradditional plug loads such ascopy machines, printers,battery chargers, televisions.Enhance Title 24 to includewhole building approachesincluding metering and datamanagement; automateddiagnostic systems; and submeteringfor tenant-occupiedspacePursue greater alignment ofnational and localized greenbuilding codes with energycodesIntegrate AB 32 standardswith energy efficiency goalsConduct analysis that willhelp the code move toward azero-based approachAnalyze approaches forwhole buildings, non-coveredend uses and measures thatare not currently credited byTitle 24Conduct tests andevaluations of potential codechange measures.Increase research andanalysis regarding howbehavior affects use ofbuildings and codecomplianceEvaluate and developappropriate approaches toinclude DR standards in C&SContinue exploration andadoption of improvedbuilding energy simulationand compliance toolsContinue to developappliance standards toinfluence the market prior topreemption by DOECoordinate Title 24 goalswith 1992 Energy Policy Actrequirements formeeting/exceeding federalcodeCoordinate development andadoption of California GreenBuilding Standards with Title20/24 and ASHRAEStandard 189, CHPSImplementation Plan and TimelineMid-Term(2012-2015)Expand Title 20 and Title 24 to coveradditional uses such as server farms,process loads and water use.Develop building standards to betterintegrate on-site clean distributedgenerationInvestigate establishing energy andgreen building codes on a communityand/or city level that may includeinfrastructure issues such astransportation, wastewater treatment,solid waste disposalContinue research to improveprogram impact and processes.Conduct analysis of embeddedenergy savings with transportation,wastewater, and solid waste optionsfor green building standardsInvestigate the balance betweenmandatory, prescriptive, and beyondcode“reach” standards to achievemore effective codes, greatercompliance rates, and moreinnovation in the marketplaceCoordinate development of relatedcodes and standards such as theCalifornia Green Building Standards,ASHRAE 90.1 and 189.1, ICC,CHPS, etc.Coordinate/support implementation oflegislation impacting C&S programsuch as AB 32Coordinate development of codesand standards with state andvoluntary programs such as EnergyStar, LEED, Flex Your Power, etc.Long-Term(2016-2020)Investigateexpansion of Titles24 and 20 toaddress allsignificant energyend uses(manufacturing,agricultural,healthcare, etc.)Evaluate includingland development inenergy standardsand regulationsContinue research.Conduct researchon revising andupdating the costeffectiveness,including thepotential for usingnon-energy benefitsas a component ofcost effectivenessPursue remainingpriorities asidentified2021 − BeyondContinue to develop andrefine approaches fromexperienceContinue research based onpromising next stepsPursue remaining prioritiesas identified1-5: Improve Develop and implement plan Investigate ways to integrate C&S Investigate a Investigate the integrationCODES AND STANDARDS SECTION 7 – PAGE 65


Strategiescoordination ofenergy codesand standardswith utilityprogramsNear-Term(2009-2011)for enhanced coordinationand integration of codes andstandards with full spectrumof EE market transformation,including EmergingTechnologies promotion,deployment, incentives,consumer education, etc.Implementation Plan and TimelineMid-TermLong-Term(2012-2015)(2016-2020)with other DSM by offering tieredgreaterincentives (financial and other) and convergence of thetechnical assistance for moreC&S and othercomprehensive and inclusiveDSM through noncodedefinitions of codes and standardsmechanismsand utility programintegration2021 − Beyondof utility infrastructureplanning with potentialcommunity-based codesGoal 2: Improve code compliance and enforcement.Compliance with California‘s efficiency codesand standards varies enormously, especiallywith respect to building codes. For example,fewer than 10 percent of HVAC systemsinstalled have permits pulled and 30-50 percentof new central air conditioning systems are notbeing installed properly. This compliance failurecomes at considerable cost to Californians—theHVAC compliance shortcomings have led to anestimated 20-30 percent increase in the peakenergy needed on hot summer afternoons. 58 Ithas been estimated that at least 30 percent ofthe technical energy savings potential of energycodes is lost due to non-compliance—but inreality there is inadequate understanding ofcode compliance rates or the resultingdegradation in performance. 59This strategy will require a strong, coordinatedeffort among federal, state and local entities, theutilities, California building officials (and theirassociation, CALBO) and other code complianceorganizations, trade and professional licensing/registration agencies, and building/developer/contractor/ manufacturers associations.Strategies2-1: Improve codecompliance andenforcement.Near-Term(2009-2011)Conduct research todetermine high-priority tacticalsolutions for code complianceand focus efforts accordingly.Increase training and supportfor local building codeofficials.Investigate regulatory toolssuch as licensing/ registrationenforcement.Evaluate proposed changesto the code and complianceapproaches to simplify andexpedite compliance.Work with local governmentsto improve code compliance,adopt above code ordinances,and provide training/educationGoal 2: Compliance and EnforcementImplementation Plan and TimelineMid-TermLong Term(2012-2015)(2016-2020)Continue to conduct furtherresearch relating to codecompliance. Refocus effortsas neededPursue appropriateinvolvement of HERS raters.Pursue trade associations toimprove “self-policing” ofmembershipInvestigate tools, softwareprograms, “incentives”, andpolicies to simplify andstreamline permit processApply feasible mechanisms toprove code compliance as apre-requisite for partnershipfunding or incentives from theIOUsContinue to conductresearchInvestigate aggressive“stick” and “carrot”programs withmonetary penaltiesand incentivesInvestigate greatestopportunities ofcomplianceimprovement ofappliances (Title 20) inthe upstream andmidstream markets,including workingdirectly withmanufacturers anddistributors to improveappliance andequipment compliance2021 − BeyondContinue to conductresearch. Investigate andpursue solutions to theperceived and real“penalties” associated withnon-complianceInvestigate codes andstandards that wouldregulate the operation ofbuildings that may includesuch things asmaintenance requirements,regular updates tooperating schedules,mandatory monitoring andcontrols points, systemreporting requirements, etc.CODES AND STANDARDS SECTION 7 – PAGE 66


8. DSM COORDINATION AND INTEGRATION8.1 VISIONEnergy efficiency, energy conservation, demand response, advanced metering, and distributedgeneration technologies are offered as elements of an integrated solution that supports energyand carbon reduction goals immediately, and eventually water and other resource conservationgoals in the future.8.2 PROFILEHistorically, demand side management (DSM)options for energy consumers have been‖siloed‖ activities within regulatory bodies,utilities, environmental organizations, andamong private sector service providers. Theprograms are focused on mass delivery andpromotion of individual products, for exampleefficient air conditioners, rather than onintegrated packages of measures, for example,air conditioner rebates with duct sealing,weather-stripping, programmable thermostats,and advanced meters. This current narrowfocus on a single product offering does notmaximize energy savings nor minimize the costsof program delivery.A narrow, single-product approach also resultsin customer confusion by requiring the customerto seek out information on a wide array ofdifferent programs with multiple points of contactin order to acquire a basic understanding of theDSM options available and the various benefitsthey offer. Most energy users across alleconomic sectors do not have the time orexpertise to seek this information; as a result,many opportunities to accomplish DSM actionsare lost.At the CPUC, a number of individualproceedings relate to DSM, including energyefficiency, demand response, advancedmetering, combined heat and power/distributedgeneration, and the California Solar Initiative(CSI), in addition to an upcoming Smart Gridrulemaking. 60 The CPUC should integrate theDSM programs within its jurisdiction – includingthe harmonization of cost-effectivenessmethodologies and metrics – in order to enableofferings of integrated packages that willmaximize savings and efficiencies of utilityprogram overhead.The development of Smart Grid technologiesthat enable active, real-time energymanagement in homes and businesses also willplay a critical role in the packaging of integratedDSM services. A recent report by IBM, Pluggingin the Consumer, demonstrates that we arepoised for the uptake of advanced energymanagement systems. 61 Activities to plan forSmart Grid integration are underway in anumber of venues, including ongoing R&D at theCEC 62 , and the upcoming Smart Gridrulemaking at the CPUC. These efforts will leadto deployment of new grid and meteringtechnologies. These, in turn, will help to optimizeenergy system performance, and encouragebehavioral changes in energy use.The goal of this Plan is to build on successesfrom initial efforts such as PG&E‘s MarketIntegrated DSM Initiative and the SCE andSempra Sustainable Communities Initiative tooffer integrated DSM solutions to maximizeenergy savings. A related goal is to designpolicies and programs in research anddevelopment, commercialization, deployment,and codes and standards that reinforce eachother and use feedback loops to constantlyimprove energy efficiency programs.DSM INTEGRATION AND COORDINATION SECTION 8 – PAGE 67


8.3 GOALGoalDeliver integrated DSM options that includeefficiency, demand response, energy managementand self generation measures, through coordinatedmarketing and regulatory integration.Goal ResultsCustomers realize increased energy savings at lower costthrough the implementation of a menu of DSM options.There are three levels of integration for DSM options:• Comprehensive and Coordinated Marketing:Outreach and consumer education, and DSMprogram options must be offered in a unifiedfashion so that energy users receive completeDSM information with minimum effort , preferablythrough single points of contact.• Program Delivery Coordination: CombinedDSM audits and recommendations across allrelevant energy management opportunities willbe offered to customers, including advice onenergy efficiency, demand response, distributedgeneration, Permanent Load Shifting (PLS),solar rebates, and other applicable measures.• Technology and Systems Integration: Thisincludes equipment and information systemsthat enable achievement of multiple DSMoptions (energy efficiency, demand response,etc.) and synergies across DSM program types(e.g., addressable electronic ballasts that bothsave energy and manage demand during utilitypeak hours).Integrated packages of DSM solutions are a consistent theme throughout each of the Chapters in thisPlan. This Chapter describes augmented, not duplicate, strategies described elsewhere.8.4 STRATEGIESThis Plan contains four overarching strategies for DSM integration:1. Pilot Programs: The best short-term pathto promote integration is to continue successfulefforts by the IOUs and pursue an expandedseries of pilot projects as part of the IOUs‘efficiency and demand response 2009-2011portfolios. These pilots will (a) be designed toinform future program and policy submissionsregarding the value and best methods andtargets of integration, (b) offer a bundled productthat includes elements of energy efficiency andconservation, consumer generation, demandresponse, and the best available AMI technologyand, (c) offer different forms of delivery(including third-party and local governmentplatforms) and information access.2. Stakeholder Coordination: For the longerterm, the CPUC will work with key stakeholdersto develop and implement a comprehensive,coordinated long-term approach to effectiveutilization of energy resources while alsoachieving GHG emissions reductions, waterconservation, waste disposal, and air qualityrequirements.3. New Technology: Technology is afundamental element in achieving the CPUC‘sBig/ Bold Strategies and maximizing thecontribution of energy efficiency in meeting thestate‘s energy and environmental goals. Amajor effort is needed to develop newtechnologies and systems that enable multipleDSM options and provide synergy across DSMprogram types. The CPUC has alreadyapproved installation of AMI throughout IOUservice areas and will soon initiate a Smart Gridproceeding which will likely spur development ofnew, integrated DSM technologies.DSM INTEGRATION AND COORDINATION SECTION 8 – PAGE 68


4. Coordinated DSM Marketing: Coordinatedmarketing will be an essential component inachieving greater up-take of integrated DSMprograms. ―Smart meter‖ systems andassociated dynamic pricing tariffs also areimportant tools for customers to monitor andreduce their energy consumption. The majorityof these systems will be deployed statewideduring 2009-2011. This present a unique neartermopportunity to promote integrated demandsidemanagement programs. Programadministrators should streamline and integratethe marketing of DSM programs in conjunctionwith smart meter deployment.8.5 IMPLEMENTATION PLANHistorically, resource efficiency messages,programs, and initiatives have been promotedas separate and largely independent activities.Energy, air quality, water, and waste regulationsare under the jurisdictions of separate agenciesand commissions. It is critical to develop ashared vision and process for regulatorycoordination in California to support the energysavings benefits of DSM coordination/integrationand to ensure consistent and mutuallysupportive energy, water, air, and GHG policyand regulations. Enhancing utility programs,technology advancement and general educationStrategies1.1: Carry out integratedmarketing of DSM opportunitiesacross all customer classes1-2: Conduct integrated DSMdelivery pilots in the Residential,Commercial, Industrial andAgricultural sectors1.3: Develop integrated DSMprograms across resources,including energy, water, andtransportation1.4: Promote development andsupport of new technologies thatenable or facilitate DSMCoordination and Integrationand training objectives depends on coordinatedregulation and voluntary efforts across thespectrum of DSM activities. In addition, theimplementation of AB 32 will require additionalcoordination by all agencies to achieve acommon goal.Achieving this vision will require new forms ofgovernment agency collaboration, mechanismsto quantify and value multiple resource benefits,and fundamental changes to the standardbusiness and service delivery practices ofutilities, energy service companies and buildingcontractors.Goal: Integrated DSM Programs, Messages, and TechnologiesImplementation Plan and TimelineNear-Term(2009-2011)IOUs adopt marketing integration plans, bysectorStreamline and integrate EE, DR, and DGprogram outreachCoordinate integrated marketing with AMIdeploymentOffer audits and technical assistance thataddress combined DSM opportunitiesPropose and launch program delivery pilots testingcapabilities and effectiveness in the marketplace,including EE, DR, AMI and DGEstablish ongoing working group to develop andimplement blueprint for integrationAssess the current state of integration-enablingtechnology and develop a guidance documentdetailing a technology development path for fullerintegration. (2009)Prioritize integration-enabling technologies inRD&D and ET programs based on thetechnology assessmentMid-Term(2012-2015)Continue integratedmarketing through AMI fulldeploymentLeverage lessons learnedto other general marketingmaterialsApply lessons from pilotsto full scaleimplementationDevelop new pilots “smartbuildings”, buildingoperator training, andsolar PV and hot waterImplement pilot programsthat integrate solutionsacross resourcesUpdate bienniallyLong Term(2016-2020)Incorporate output ofother integrationstrategies and pilotprograms intomarketing materialsExpand successfulactivities statewideExpand successfulapproachesUpdate bienniallyDSM INTEGRATION AND COORDINATION SECTION 8 – PAGE 69


9. WORKFORCE EDUCATION AND TRAINING9.1 VISIONBy 2020, California’s workforce is trained and fullyengaged to provide the human capital necessaryto achieve California’s economic energy efficiencyand demand-side management potential.9.2 PROFILEWorkforce Education and Training (WE&T)focuses on educating and training people toperform the jobs needed to reach California‘sclean energy goals. The IOUs currently provideefficiency-specific training and educationcourses to fulfill needs associated withimplementing IOU programs; efficiency-specificcourse materials; training for third-party programimplementers; and energy efficiency andsustainability curricula at K-12 schools.In order to accommodate the dramatic increasein energy efficiency activities envisioned by thisPlan and required by AB 32, California mustdevelop a trained workforce, including peoplequalified in energy-efficiency engineering,construction, maintenance, program design andimplementation, and financial analysis. Meetingthe goals established in the Plan will require atleast two categories of personnel development:completely new types of jobs that do not existtoday (e.g., corporate emissions manager) andsupplemental training for existing positions (e.g.,training engineers to enhance energy efficiency).This cross-cutting sector demands a trulystatewide coordination effort that integratesenergy efficiency training into a wide range ofpublic and private programs. This effort willinclude the California Department of Education,the Department of Employment Development,industry and labor associations, educationalinstitutions at all levels, technical and vocationaltraining organizations, community based nonprofitorganizations, and the businesscommunity.9.3 GOALSGoals1. Establish energy efficiency education andtraining at all levels of California’seducational systems.2. Ensure that minority, low income anddisadvantaged communities fullyparticipate in training and educationprograms at all levels of the DSM andenergy efficiency industry.Goal ResultsStudents develop careers and existing workers developskills and knowledge that advance DSM businesses, policy,research and development, and education.Individuals from the targeted communities take advantage ofprograms that specialize in energy disciplines at all levels ofthe educational system and successfully advancethemselves into rewarding careers in the energy servicesfields.9.4 STRATEGIESAn effective, comprehensive WE&T program for a new energy efficient economy requires collaborativeefforts by many entities. It is not the core mission of utilities to effectuate the level of change needed toWORKFORCE EDUCATION AND TRAINING SECTION 9 – PAGE 70


create a comprehensive WE&T program, nor can ratepayers fully fund the effort. In addition to theeducational institutions themselves, participants in defining and/or providing energy efficiency WE&Tresources include:• Government. California Department ofEducation and the Department ofEmployment Development, federalgovernment (e.g., Department ofLabor), specialized state agencies(e.g., licensing boards) and localgovernments (e.g., buildingdepartments) to recruit train andprepare workforce candidates fortechnical and professional careers.• Educational Institutions. TheUniversity of California, the CaliforniaState University, community colleges,school districts and private colleges,universities, and technical schools.• Community-based and non-profitorganizations. Organizations fundedto provide education, careerdevelopment and workforce trainingprograms (i.e., Greenlining Institute,Apollo Alliance).• Industry and labor organizations.Trade unions, the Sheet Metal and AirConditioning Contractors' NationalAssociation, the California BuildingPerformance Contractors Association,home rating organizations, and energyefficiency associations.Several strategies must be initiated or completed in the near term to more thoroughly define, initiate anddrive long-term WE&T development and strategic planning.1. WE&T Needs Assessment. An in-depthformal statewide training and educationresource inventory and needs assessment isnecessary for long-range strategic planningand delivery. The needs assessment andresource inventory will be structured toproduce short-, near- and long-termworkforce strategies to support each sectordefined in the Plan. Information in the WE&TConvener Report 63 provides an excellentstart for the assessment. The assessmentwill be completed by a third-party with itsprocess managed by the CPUC and IOUs, incollaboration with the California Departmentof Education.2. WE&T Web Portal. The web portal willinclude links to various demand-sidemanagement (DSM) related trainingprograms and will allow for a single point ofcommunication. The portal will also serve asa repository for all demand-side managementand energy efficiency training, educationalconferences, and career opportunities. Thisportal will be created and funded incollaboration with other appropriate entities,and linked to the statewide energy efficiencyweb portal.3. Energy Efficiency WE&T Task Force. TheTask Force, comprised of energy efficiencyprogram administrators, the CPUC, andeducational experts, will fulfill administrativefunctions including: developing a needsassessment RFP; selecting the third party toconduct the needs assessment; andmanaging the needs assessment evaluation.The Task Force members will continue tohelp implement the goals and strategies setforth in this Plan.4. Identify And Implement Specific ProgramsFor Each Educational Sector. WE&Tneeds are best organized and approached byidentifying the enabling or supportingeducational sectors. Thus, five educationalsectors have been defined for addressingWE&T needs and opportunities: Kindergartenthrough high school, adult education andcommunity colleges, technical training,colleges and universities, and minority, lowincome and disadvantaged communities.These actions will also support development of funding streams other than ratepayer funding, identifymarket sector specific needs, and inform short-term actions to initiate longer-term strategies for eachmarket and educational sector.WORKFORCE EDUCATION AND TRAINING SECTION 9 – PAGE 71


WE&T measures that are specific to particular industries or economic sectors are included in theappropriate chapters of this Plan. For example, the HVAC Chapter addresses training for technicians andinstallers and building code officials. Similarly, the Commercial Chapter contains a strategy for expandedbuilding operator certification training and integrated training of architects and engineers for the design ofzero net energy buildings. This Chapter focuses on cross-cutting workforce development measures.9.5 IMPLEMENTATION PLANGoal 1. Establish energy efficiency education and training at all levels of California’s educationalsystem.This Plan envisions that the IOUs will act as acatalyst to action by sponsoring severalfoundational activities that are necessary toaccurately identify specific WE&T needs andrecommendations for action. These activitieswill also enable the IOUs to review their existingprograms and better align them within thecontext of a comprehensive WE&T strategy.The most critical near term activity is acomprehensive needs assessment to evaluateenergy efficiency workforce requirementsthrough 2020 that are necessary to sustain arobust and effective industry to accomplish thegoals set forth in this Plan. This needsassessment will solicit broad input fromorganizations identified above.Strategies1-1: Define, initiate anddrive long-term WE&Tdevelopment and strategicplanning, includingidentification of fundingstreams and market sectorspecific needsGoal 1: Energy Efficiency Education and TrainingImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Conduct an in-depth formalstatewide energy efficiencytraining and education resourceinventory and needsassessmentAssess current and alternativefunding mechanisms for WE&TactivitiesCreate a WE&T-specific webportal and identify entities to cofundand co-sponsor the webportal with utilitiesInitiate ongoing dialogue withbroad group of marketparticipant and educationstakeholders to inform theoverall planEstablish task force to overseeutility specific WE&T activitiesUpdate assessment asneededMaintain and update webportalMaintain ongoing dialoguewith actors positioned tolead priority educational andworkforce developmentinitiativesContinue to oversee utilityspecific WE&T activitiesLong Term2016 − 2020Update assessment as neededMaintain and update web portalMaintain ongoing dialogueContinue to oversee utilityspecific WE&T activitiesWORKFORCE EDUCATION AND TRAINING SECTION 9 – PAGE 72


1-2: Support thecommunity college andadult education efforts tosupport students todevelop their educationbased on visible careerpaths in energy efficiencyand related fieldsUtilize community colleges toprovide technical training suchas HVAC maintenance andbuilding operator certificationDevelop appropriate linkageswith K-12 programsCoordinate with the communitycolleges and adult educationsector to incorporate an energycomponent into their careerladdering conceptImplement programs.Evaluate progress andrefine strategyFind opportunities toexpand programs andfunding and placementpartnershipsImplement programs.Evaluate progress and refinestrategyFind opportunities to expandprograms and partnerships1-3: Incorporate energyefficiency and demandside energy managementinto traditional contractorand technician training,such as for plumbers andelectricians, and expandtraining resources toproduce target numbers oftrained workersExpand or establish trainingcurricula, and training andprofessional careerdevelopment programs inbuilding construction, services,building operator and otherenergy efficiency technicalfieldsEstablish or expand keyfinancial and placementpartnerships that demonstrateemployment prospects fortrained personnelImplement programsEvaluate progress andrefine strategyFind opportunities toexpand programs andpartnershipsImplement programsEvaluate progress and refinestrategyFind opportunities to expandprograms and partnerships1-4: Create or expandcollege and universityprograms with energyefficiency focus and fostergreen campus efforts toapply this knowledge inclear view of students andfacultyUtilize existing UC/CSUextension programs toincorporate a continuingeducation curriculumcomponentWork with Universities andcolleges to expand professionalenergy related degree offeringsand contribute to tailoredcurriculumImplement programsEvaluate progress andrefine strategyFind opportunities toexpand programs andpartnershipsImplement programsEvaluate progress and refinestrategyFind opportunities to expandprograms and partnerships1-5: Develop K-12curriculum to includeenergy efficiencyfundamentals (e.g. math,science, behavior) andidentify career options inenergy-related fieldsIdentify opportunities toleverage governor’s careertechnical initiative.Identify opportunities to workwith the California Departmentof Education to developcurricula with specific contentfor energy and GHG issues.Support outreach into K-12schools on energy, water andenvironmental issues.Implement programsEvaluate progress andrefine strategyFind opportunities toexpand programs andpartnershipsImplement programsEvaluate progress and refinestrategyFind opportunities to expandprograms and partnershipsGoal 2: Ensure that minority, low income and disadvantaged communities fully participate intraining and education programs at all levels of the DSM and the energy efficiency industry.WORKFORCE EDUCATION AND TRAINING SECTION 9 – PAGE 73


Coordination of LIEE workforce training withother energy efficiency training programs isessential. This includes coordination with TheGreen Jobs Act of 2007 as well as with existingprograms associated with state agencies suchas the Employment Development Department(EDD) and the Department of Social Services(DSS). The Green Jobs Act of 2007, approvedas part of the recent federal Energy Bill,authorizes funding up to $125 million annuallyfor job training in the energy efficiency andrenewable energy industries and facilitateseconomic development within minority, lowincome,and economically disadvantagedcommunities. The IOUs will work to coordinateboth the federally-supported training to beoffered under this Act, as well as other stateemployment training resources, with the LIEEworkforce training. Recruiting for trainees maybe accomplished within the targetedcommunities served by LIEE contractors. Thiscoordination should expand employment optionsfor those in disadvantaged communities beyondthe LIEE program itself. Finally, as newlegislation is adopted and AB 32 beginsimplementation, additional funding andprograms from those activities need to beleveraged to the advantage of the energyefficiency WE&T effort.Strategies2-1: Collaborativelyidentify appropriate goalsand strategies to buildCalifornia’s energyefficiency workforcethrough 2020, focusing ontraining that increasesparticipation from withinminority, low-income anddisadvantagedcommunities in achievingCalifornia’s economicenergy efficiency potentialGoal 2: Disadvantaged CommunitiesImplementation TimelineNear TermMid Term2009 – 20112012 − 2015Leverage MarketingEducation & Outreach andWE&T task forces to partnerw/ community-basedorganizations and providetargeted outreach onemployment opportunitieswith energy efficiencyDevelop Low Income WE&TPlanTrain qualified diversebusiness enterprises fromminority, low-income anddisadvantaged communitiesto undertake or expandefficiency servicesImplement programsEvaluate progress and refinestrategyFind opportunities to expandprograms and partnershipsLong Term2016 − 2020Implement programsEvaluate progress and refinestrategyFind opportunities to expandprograms and partnershipsWORKFORCE EDUCATION AND TRAINING SECTION 9 – PAGE 74


10. MARKETING, EDUCATION AND OUTREACH10. 1 VISIONCalifornians will be engaged as partners in thestate’s energy efficiency, demand-sidemanagement and clean energy efforts bybecoming fully informed of the importance ofenergy efficiency and their opportunities to act.10.2 PROFILEThe purpose of Marketing, Education andOutreach (ME&O) is to increase consumerawareness and participation in demand sidemanagement activities and to encouragebehavior changes that save energy, reducegreenhouse gas emissions, and support cleanenergy solutions. A highly successful ME&Oprogram is a fundamental part of many of thestrategies and programs presented in this Planas well as the overarching goals of behavior andmarket transformation for energy efficiency. Asuccessful ME&O must move consumersthrough a transitional process from awareness,to attitude change, to action.Californians are currently engaged in a broadpublic discussion about energy use and itsrelationship to global warming and theenvironment. AB 32 set the stage for a statewidetransition to a clean energy future by requiringthe reduction of greenhouse gas emissions to1990 levels by 2020. Across numerous studies,energy efficiency strategies consistently areidentified as uniquely able to significantly reduceGHG emissions and do so with a net economicsavings. As a result, there is increasedawareness of the value of energy efficiency andinterest among consumers and businesses to dotheir part. This discussion presents a strategicwindow of opportunity to use ratepayer-fundedME&O to leverage public and private messageson global warming to achieve greater impact onconsumer awareness of, and demand for,energy efficiency actions.Between 2006 and 2008, California IOUratepayers will have funded approximately $300million for public education, marketing, andoutreach to support customer demand-sideprograms. Of this amount, $176 million fundspublic education and outreach for IOU energyefficiency programs. 64The majority of these outreach efforts havefocused primarily on promoting isolatedconsumer actions, such as buying energyefficient clothes washers or compact fluorescentlight bulbs, or reducing usage to preventoutages during peak periods. By and large,ME&O messages have lacked thecomprehensive focus necessary to engageconsumers in adopting energy efficiency broadlyas a way of life. While messaging thatdifferentiates program and service area issueswill remain an important aspect of overall ME&Oefforts, the launch of a coherent statewidecampaign will be instrumental in bringingconsumer awareness of the value of energyefficiency to the next level. Accordingly, it is atop-level priority for the next round of efficiencyinvestment.The CPUC‘s Decision 07-10-032 directed thatthe current approach be changed significantly,under Commission direction and oversight,beginning in 2009 in order to better leverageratepayer ME&O funding for more effectiveresults.MARKETING, EDUCATION AND OUTREACH SECTION 10 – PAGE 75


10.3 GOALSGoalCreate and launch an integrated, statewide Marketing,Education and Outreach effort for energy efficiency,including an energy efficiency brand.Goal ResultsHigh levels of awareness statewide of the value ofenergy efficiency that leads to strong demand forenergy efficient products, homes and services.The ME&O effort will:• Create instant brand recognition forenergy efficiency in California, similar tothe US EPA‘s EnergyStar label, andexpanded to reflect GHG benefits.• Utilize appropriate channels to createeffective ―demand pull‖ for efficiency10.4 STRATEGIESactions that are necessary for achievingthe goals set forth elsewhere in thisPlan.• Motivate consumers to reduce energyconsumption on a daily basis.The ME&O goal will be achieved through four strategies:1. An Energy Efficiency Brand: Creation of aninstantly recognized brand for ―CaliforniaEnergy Efficiency‖ with clear delineation ofwhat the brand encompasses, includingreducing GHG.2. Integrated Marketing: Development ofmarketing messages that offer bundles ofDSM programs targeted to specific customergroups and delivery of effective messagesusing partnerships with a range of energyefficiency participants, including localgovernments, retailers and manufacturers.3. Social Marketing: Use of social marketingtechniques to create emotional andintellectual drivers for consumers to make acommitment to change and participate inenergy efficiency.4. Internet-Based Networking: Creation of aweb portal that allows energy efficiencypractitioners and consumers to exchangeinformation and solutions on implementingenergy efficiency programs and measures.______________________________________________The key to the next generation of ME&O is tocreate a consumer experience that offers anintegrated set of DSM information and programoptions that are clear, relevant to the consumer,and accessible to all Californians. By beginningwith a systematic approach to branding energyefficiency that is rooted in effective messageresearch, evaluation, social marketing,behavioral science, and targeted segmentation,California will lay a framework for successfulintegration of ME&O across all clean energyprograms. Under Commission direction andoversight, a statewide brand will establish aclear, consistent message about the individualand social value of energy efficiency, and set afoundation for consumers to receive targetedinformation on efficiency programs, products,and incentives. Next, segmentation research willbe used to develop a wide range of appropriatemessages designed to build on the brand andconnect with specific groups of consumers,including low income and other hard to reachpopulations. Additional highly-targeted programmarketing efforts will be conducted that focus onconsumer segments with the highest propensityto participate in clean energy programs in orderto create a strong base of early adopters. Theseefforts will use multiple channels and leverageMARKETING, EDUCATION AND OUTREACH SECTION 10 – PAGE 76


strategic partners across the spectrum. Allmessages will be components of an integratedmarketing strategy that will provide consumerswith an increased understanding of the full arrayof energy efficiency and DSM options.California‘s businesses and educationalinstitutions (public and private) with excellentchannels to further leverage energy efficiencymessaging and create the next generation ofenergy ambassadors. The statewide ME&Oeffort will work with both sectors to leverage theirresources and utilize them fully in the statewidecampaigns.The Internet offers powerful, cost-effectiveopportunities as a clearinghouse for energyefficiency programs and promoting behaviorchange. As required by D.07-10-032, the ME&Oeffort will include development of an interactiveEnergy Efficiency Web Portal that provides oneintegrated point of access to a multitude ofenergy efficiency information. The web portalwill be a user-centered, interactive resource thatallows users to easily navigate multiple points ofdata, applications, and information systems. 65The portal will have two development stagesand functions. The first stage will be a websitefor energy efficiency professionals such asprogram designers, implementationpractitioners, evaluators, marketers, and policymakers to share information and best practiceson implementing energy efficiency measures,policies and programs. The second stage willbe development of an online resource forindividual consumers (and businesses) thatprovides easy access to information onproducts, programs, services, practices andtools to manage their energy usage. Thisconsumer web platform will be designed tofacilitate peer-to-peer information exchange.Peer-to-peer and word-of-mouth contact areproven modes of information exchange thatheighten motivation for action. The ME&Oeffort will maximize these and other socialmarketing techniques to motivate consumersand achieve goals for changes in energy usebehaviors, attitudes and perceptions. Thepractice of energy efficiency requires asustained effort on the part of the consumer,both in information acquisition (i.e., what are themost effective efficiency methods andtechniques) and in implementation and ongoingpractice. Therefore, an approach based onincreased access to information and behaviorbasedmarketing techniques will both educateand inspire consumers to make a long-termchange in how they think about and use energy.For all of these strategies to be effective, clearobjectives and metrics for the statewidecampaign will be established prior to its launch,including an appropriate evaluation mechanismto measure results. The ME&O Task Force willcontinue to function in an advisory capacity,leveraging inputs and expertise from keystakeholders whose contributions collectivelyare vital to the successful implementation of thegoals and strategies envisioned in this Plan. TheCPUC will guide the process for developing andimplementing the ME&O effort and integratingstrategic adjustments and improvements overtime to ensure the achievement of goals andbenchmarks.The result of these efforts will be a coordinated,comprehensive system of communicating withCalifornians and delivering an array of effectivemessages and valuable information resources.This system will prove essential for engaging thepublic to help achieve California‘s aggressiveenergy efficiency goals and global warmingsolutions.MARKETING, EDUCATION AND OUTREACH SECTION 10 – PAGE 77


Strategies1-1: Establish arecognizable andtrustworthy brand forCalifornia’s EnergyEfficiency and otherDSM consumerproducts and services1-2: Develop anintegrated marketingplan for all Californians1-3: Use socialmarketing techniquesto build awareness andchange consumerattitudes andperceptions1-4: Develop aCalifornia EnergyEfficiency web portalwith statewideInformation on GHGreductions, efficiencyand DSM awarenessand options1-5: Conduct publiccommunicationscampaigns, alongsidelonger-term supportingschool educationinitiatives to deliver theefficiency messageGoal 1: Comprehensive ME&O EffortImplementation Plan and TimelineNear TermMid-Term2009 – 20112012 − 2015Research appropriate look andmeaning of a California efficiency/GHG reduction BrandLaunch integrated energyefficiency/DSM BrandEvaluate progress and refinestrategyConduct statewide segmentationresearch, including LIEE and otherhard to reach groups, on interests,awareness, and attitudes/perceptionsrelated to energy efficiency andglobal warming messagingEstablish objectives and metrics forpublic campaignDevelop targeted and highly relevantenergy efficiency and DSMmarketing messages to incitebehavior change/actionCreate partnerships with privateindustry and businesses to helpmotivate consumer and businesssector actionDefine deliverables for each strategyDevelop a roadmap for a socialmarketing approach includingexploration of behavioral scienceprinciplesDevelop initial website/portal for theenergy efficiency/DSM industryBegin pilot programs in using webportalImplement integrated publiccommunications and marketingcampaignsIdentify or develop curriculum for K-12 education, and work with stateBoard of Education to integrate intostate requirementsEvaluate progress andrefine strategyEvaluate progress andrefine segmentationresearchImplement socialmarketing approachEstablish partnershipswith community, social,and other institutions andnetworks to convey theaction messagesAdd consumer andbusiness end use functionto website/portalRefine campaign basedon ongoing research andevaluation insights(above)Initiate K-12 curriculum ininitial locationsEvaluate and refine, asappropriateLong Term2016 − 2020Evaluate progress and refinestrategyEvaluate progress and refinesegmentation researchEvaluate progress and refinestrategyEvaluate progress and refinestrategyContinue to refine and deliver publiccommunication campaign tosupport targeted actionsExpand K-12 curriculumapplications statewide and furtherintegrate into state curriculumrequirementsMARKETING, EDUCATION AND OUTREACH SECTION 10 – PAGE 78


11. RESEARCH AND TECHNOLOGY11. 1 VISIONTechnology advancement related to energy use and demand will match—or even eclipse— theconsumer electronics industry in innovation, time to market, and consumer acceptance.11.2 PROFILEThe development, enhancement, deployment,and operation of more and better energyefficiency related technology is fundamental toachieving California‘s energy efficiency visionand goals. The time frame of California‘s goalsdemands a targeted focus on moving innovativetechnologies more quickly into the marketplace.Since most demand-side technologies involve ahuman interface, increased knowledge of humanbehavior and social science is also necessary—as is the infusion of that knowledge intotechnology development, deployment, andintegration. Finally, establishing a robust andvibrant evaluation and user feedback loop iscrucial to advancing technology development.Technology progresses along a continuum frombasic research to general use, as suggested bythe graphic below. 66 The advancement processcomprises several stages and is not strictlylinear. It also includes several feedback loops,restarts and early terminations.LabDevelopmentTechnology Advancement ContinuumTechnicalSupportProgram MarketSupportBasic ResearchAppliedResearchDesign Test Introduction General UseLabNew Ideas Enhance DemandsHistorically, the Energy Commission‘s PublicInterest Energy Research (PIER) program hasfunded technology development primarily priorto market readiness, corresponding to the―Applied Research‖, ―Design‖ and ―Test‖ phasesabove. In 2000, the CPUC, utilities and theEnergy Commission started the EmergingTechnologies Coordinating Council (ETCC) tocoordinate statewide market promotion ofemerging technology efforts. That program‘s hasbeen on supporting energy efficiencytechnologies that are market ready but notcommonly accepted (moving technologies fromthe ―Test‖ and ―Introduction‖ phases toward―General Use‖, as displayed in the diagramabove). To achieve the next level of energyefficiency, the Plan is looking beyond thathistorical focus.Innovation in building design, materials, andconstruction practice emanates from nationalRESEARCH AND TECHNOLOGY SECTION 11 – PAGE 79


laboratories, such as the National RenewableEnergy Laboratory (NREL) and the LawrenceBerkeley National Laboratory (LBNL). Majorportions of their work are funded by DOE, whileLBNL receives substantial PIER funding. Furtherapplied research occurs with proprietary fundingfrom equipment and building materialsmanufacturers. Additionally, at the national level,leading edge energy efficiency initiatives arenow often led by entities like the AmericaSociety of Heating, Refrigerating, and AirconditioningEngineers (ASHRAE), theAmerican Institute of Architects (AIA),Architecture 2030, the New Buildings Institute,other state organizations like the New YorkEnergy Research and Development Authority(NYSERDA), and large municipalities like NewYork City. On an international level, theleadership of the United Kingdom and theEuropean Commission is critical. Within11.3 GOALSNew technologies that use minimum energy aswell as new energy efficiency enablingtechnologies (e.g., nanotechnology, wirelesssensors, DC Power Architecture) arefundamental to a transformed energy market.However, neither utility-funded ETCC programs,nor PIER by themselves create technology ordrive technology advancement; rather theysupport the commercialization process andcreate an element of market pull.Utility and Energy Commission energy efficiencytechnology programs must be refocused toCalifornia, agencies like the SacramentoMunicipal Utility District (SMUD) and progressivemunicipalities are also often on the leadingedge. California will benefit greatly fromdeliberate efforts to secure better integration andleverage across these activities.While new buildings and industrial facilities offergood opportunities to adopt new advancedtechnologies, this construction replaces only 1-2percent of the existing stock each year. Tomake rapid progress with energy efficiency willalso require making incremental technologyimprovements that can be inserted intoCalifornia‘s existing buildings and industrialfacilities. It will be important that research onadvanced technologies pursue paths that targetboth breakthrough as well as incrementaltechnologies and their performance gains.catalyze research, development andcommercialization of technologies that supportthe BBEES and integrated energy solutionsinitiatives. As noted above, research andtechnology strategies must include the entiretechnology advancement continuum as well asthe operational and behavioral factors thatinfluence technology usage. This will requiregreater attention to, and prioritization of, DOEand privately-funded Research andDevelopment (R&D) activities, and more explicitcommercialization and utilization strategies.Goal1. Refocus utility and Energy Commission energyefficiency research and technology support tocreate demand pull and set the research agenda forboth incremental and game-changing energyefficiency technology innovations.2. Conduct targeted emerging technologies R&D tosupport the Big, Bold Energy Efficiency Strategiesand integrated energy solutions goals.Goal ResultsRatepayer-funded R&D programs will explicitly support widelyapplicable whole-building improvement, lighting, and plug loadsolutions envisioned in this Plan and will be used to leverage otherprivate and public funds for the deployment of new technologies.Profound improvement in equipment efficiency as well as newbuilding materials and designs aimed at achieving more efficiencyfrom new buildings than technically feasible today, and necessaryto achieve Zero Net Energy and hot/dry climate HVAC outcomesRESEARCH AND TECHNOLOGY SECTION 11 – PAGE 80


11.4 STRATEGIESCalifornia‘s energy efficiency goals require substantial changes in all stages of the technologyadvancement cycle including technology research and development, marketing, and operations.Strategies must harness private market forces – as well as regulatory-directed efforts - to foster thedevelopment and deployment of technologies and methods that promote and support a comprehensiveadoption of energy efficiency practices. Key research and technology strategies are:1. Engage the full-range of participants –private entities, national labs, clean energyand environmental groups, green venturecapital firms, federal, state and localgovernments, utilities and consumers.2. Identify new technologies and enhanceexisting technologies to make them betterand improve their uptake and use.3. Employ a systems approach to establishingresearch priorities.4. Facilitate paths-to-market for technologiesand enabling/supporting practices through,directed research and technologyinvestment, market push/pull techniques, andtargeted product distribution methods.5. Apply social and behavioral science theory toencourage the adoption and best use ofresources and energy efficient technology.11.5 IMPLEMENTATION PLANGoal 1: Create demand pull and set the research agenda to pursue both incremental and gamechangingenergy efficiency technology innovations.To stimulate transformations in technology andrelated market dynamics, ratepayer-fundedemerging technologies programs must befocused on creating demand pull for theemerging technologies that support the goals ofthis Plan. Key to this effort is a focused effort toleverage the R&D resources of both the publicand private sectors.Private industry‘s enormous investment intechnology development and its ability torespond quickly to changing economic prioritiesand to capture opportunities is needed to realizethe goals of the Plan. federal R&D funding,particularly its role in supporting for nationallaboratories, also plays a critical role in earlystageR&D activities for emerging technologies.Academic research (both public and private) is athird major technology development andadvancement force, while the efforts of otherstate or regional entities that utilize energyefficiency as a means to achieve their goals(e.g., CARB, South Coast Air QualityManagement District) provide additionalresources.Better coordination among these activities willensure both incremental and game-changingenergy efficiency technologies, while at thesame time creating sustained demand pull forthe technologies that emerge.Strategies to tap incremental technology gainswill draw on collaboration with technologyproviders and the R&D community to promoteperformance enhancements of existingtechnologies. This work will include targetingleading opportunities for energy management,such as with plug-loads (e.g., High DefinitionTelevision), one of the major growth areas indemand. In addition, targeted R&D is requiredfor commercial and residential lighting, as wellas energy management control systems.RESEARCH AND TECHNOLOGY SECTION 11 – PAGE 81


Goal 1: Create Demand Pull for New TechnologiesImplementation Plan and TimelineStrategies Near-Term Mid-Term Long Term1-1 Apply systems approaches to Collaborate with regional and Maintain coordination and Ongoingestablishing research prioritiesnational labs, manufacturers, collaboration processuniversities to develop andApply findings and insightsenhance technologies that canto steer research agendashelp meet the statewideof collaborating partiesstrategic EE/DR goalsForm Utility advisory group toformally provide input into PIERresearch strategies andprograms and coordinate withETCC promotion processTarget most promisingopportunities for improvingplug-loads, lighting, andintegrated DSM information &control systemsRefine ET and PIER process toencourage more rapidevaluation of emergingtechnologies1-2: Leverage private industryand federally funded technologyresearch and investmentExpand federal governmentR&D support for and integrationwith California’s effortsCreate an investor-ET networkto share market information,technology assessment results,and expedited access toincentive programsPilot incubator program to fasttrackET deploymentExpand upstream relationshipsand channels to effectivelytarget and generate support forenergy-related technologyImprove and evolveenabling mechanisms.Continuous improvement,including lessons learnedCreate mechanisms forenabling technologydevelopment and supportto technology incubators,inventors at thedevelopment stageDeploy statewide EE-basedtechnology incubationprocessContinuous improvement,including lessons learnedCreate mechanisms forenabling technologydevelopment and supportto technology incubators,inventors at thedevelopment stageOngoing1-3: Enhance market intelligenceand behavioral research activitiesrelated to energy efficienttechnologiesDevelop road map to identifyand prioritize consumer needs,behavioral drivers and decisionprocessesDevelop and launch behaviorand market research agendaIntegrate customer influencesin emerging technologiesproject screeningAssess technology specificmarket potential usingsecondary market research toobtain technical and economicpotential on new and emergingtechnologies and marketsegmentsIntegrate research and2009-2011 M&V studies forcontinuous improvementOngoing research oncustomer choices,acceptance, experienceswith new technologiesWhere secondary researchis lacking, perform primarymarket research on specificapplications andtechnologiesIntegrate research and2012-2014 M&V studies forcontinuous improvementOngoing research oncustomer choices,acceptance, experienceswith new technologiesWhere secondary researchis lacking, perform primarymarket research on specificapplications andtechnologiesRESEARCH AND TECHNOLOGY SECTION 11 – PAGE 82


Implementation Plan and TimelineStrategies Near-Term Mid-Term Long Term1-4: Expand activities to createmarket pull for energy-efficienttechnologiesPlan and launch knowledgemanagement systemsExplore customer/manufacturertargeted strategies for creatingpullContinuous improvement ofknowledge system, includinglessons learned. Increasescope of reference materialwhere neededContinuous improvement ofknowledge system, includinglessons learnedIncrease scope of referencematerial where neededGoal 2: Conduct targeted emerging technologies R&D to support the Big, Bold Energy EfficiencyStrategies/Programmatic Initiatives and integrated energy solutions goals.While Goal 1 calls for reshaping the overallfocus and direction of ratepayer-funded energyefficiency R&D programs, in the near term, it iscritical that work progress rapidly on specificareas to support the BBEES for Zero Net Energybuildings and hot-dry climate-appropriate HVACtechnologies described in this Plan.To stimulate major breakthroughs in support ofBBEES there must be an intensive focus on thetechnologies, products, and practices driving themajority of building energy use, as well asintegrated building design approaches anddynamic diagnostic and energy managementcontrol systems that take a holistic view ofbuilding design, delivery and operations.performance best suited to California‘s climate.This approach must extend beyond equipmentcomponents and building systems to encompasswhole building, integrated approaches. Initialwork may call upon pilot efforts, to be followedlater my larger scale market transformationstrategies. One example of this type of pilot is aDOE-led effort at UC Merced, being executed bya team composed of LBNL, United TechnologiesResearch Center, UC Berkeley, and UC Merced,directed at the identification and maturation ofkey technologies for integrated buildingoperation. This effort aims to reduce energydemand by nearly 30 percent by using systemstechnologies for real-time energy performancediagnostics.A focus of Goal 2 will be on ZNE homes,commercial buildings, and HVAC technologyGoal 2: Targeted R&DImplementation Plan and TimelineStrategies Near-Term Mid-Term Long Term2-1: Develop general R&Dcommunity support for supportBBEESConvene collaboration amongresearchers and their funders to ensurealignment of activities with big, boldfocus areas for ZNE buildings and hotdryclimate HVAC technologies andsystemsContinue involvementand collaboration withR&D community,including input toensure alignmentContinue involvement andcollaboration with R&Dcommunity, includinginput to ensure alignmentRESEARCH AND TECHNOLOGY SECTION 11 – PAGE 83


2-2: Promote cost-effective neartermperformance enhancementsof existing technologiesTarget building shell, HVAC, lightingand supporting areas, such as realtimeenergy performance monitoringand automated buildingcommissioning technologiesCollaborate with manufacturers toimprove performance of existingtechnologiesDevelop specifications to drive /guide improvement activities.Provide technology feedbackthrough ET assessmentsExplore longer term strategies toincrease saturation of new big andbold measures and technologiesTarget additional big,bold focus areasContinuousimprovement, includinglessons learnedContinuecollaborations withdesigners, builders,and manufacturers tobring more efficienttechnologies into themarketContinue previous effortswith higher levels ofattention to zero netenergy residential goalsContinuous improvement,including lessons learnedContinue collaborationswith manufacturers tobring more efficienttechnologies into themarket2-3: Develop initiatives aimed atPIER to support larger gains insupport of BBEESProvide stakeholder input to ensurealignment of PIER activities withBBEESCollaborate with PIER to develop aformal process to roll PIERdeveloped technologies into ETContinue collaborationwith PIER, includinginput to ensurealignmentContinue collaborationwith PIER, including inputto ensure alignment2-4: Develop initiatives aimed atET to support BBEESInitiate upstream technologyprogram activities, including wholebuilding integrated solutions.Embark on plan to demonstrate bigbold measures in customer sites andseed the marketConduct “pilot” programs of newtechnology seeding and marketuptake through subsidies andincentivesCollaborate with manufacturers innew ambitious pilot programs,including full-scale demonstrationprograms to mature innovativesystem technologiesContinue to driveefforts aimed at nonmainstreamtechnologies. Improveand evolve upstreamprogramsContinue to collaboratewith manufacturers innew ambitious pilotprogramsContinue to drive effortsaimed at non-mainstreamtechnologiesRESEARCH AND TECHNOLOGY SECTION 11 – PAGE 84


12. LOCAL GOVERNMENTS12.1 VISIONBy 2020, California’s local governments will be leadersin using energy efficiency to reduce energy use andglobal warming emissions both in their own facilitiesand throughout their communities.12.2 PROFILECalifornia‘s 600-plus local governments areremarkably diverse—they range from the largestcounty in the United States to small towns; frombusy agricultural centers to residential suburbsto world-renowned cities. 67 This diversityincludes energy efficiency: California‘s localgovernments and their communities facedifferent circumstances and have differentconstituencies, and are at different levels ofcommitment and capacity. Many of them,however, are paying significant attention toenergy efficiency and climate change and areinterested in doing what they can, as quickly asthey can, and in collaboration with theirresidents, other local governments, stategovernment, utilities and other key participants.Local governments share a broad array of energy-related authorities and opportunities:Regulatory Authority. Local governments havesignificant powers that can improve the energyefficiency of new and existing buildings. Theseinclude:• Ensuring compliance and enforcementof the Title 24 energy code for residentialand commercial buildings.• Adopting building codes beyond Title24‘s energy requirements (andpotentially other ―green‖ requirements).• Supporting highly efficient projects thatvoluntarily exceed minimum energycodes through favorable fee structures,fast-tracked permitting and otherinnovative and locally appropriateapproaches.• Enacting ordinances with point-of-saleor other approaches that spur efficiencyactions in existing privately ownedbuildings.• Applying efficiency-related ―carrots‖ and―sticks‖ using local zoning anddevelopment authority.Energy Use for Government Facilities. Localgovernments can be significant energy endusers in their own buildings and facilities, frompublic schools to wastewater treatment plants toCity Hall. These facilities provide an opportunityto ―lead by example‖ by improving energyefficiency, reducing CO 2 emissions, and cuttinggovernment energy bills. They can also usethese facilities to showcase the products andpractices that will become commonplace in a―zero net energy‖ world.Energy Leadership in Local Communities.Local governments often can play an importantrole in influencing the energy attitudes andactions of their citizens and businesses. Thiscan take on many forms, from public educationto adopting innovative policies and initiatives tointegrating actions addressing energy efficiency,climate change and sustainability.LOCAL GOVERNMENT SECTION 12 – PAGE 85


The CPUC has long-recognized the unique role of local governments in fostering innovation. Almost tenyears ago, the CPUC directed utilities to consider programs that take advantage of the unique expertise,relationships with customers, and ability to coordinate among related activities offered by individual orgroups of local government. 68 So too have there been local governments leading innovation withefficiency on their own, as well as through their associations – the League of California Cities, CaliforniaState Association of Counties, Local Government Commission. More recently the state AttorneyGeneral‘s Office has called upon local governments to use their CEQA 69 compliance responsibilities toaddress greenhouse gas impacts and mitigation strategies of local development policies. Energyefficiency policies and initiatives are among the options available to communities.12.3 GOALSGoals1. Local governments lead adoptionand implementation of “reach”codes stronger than Title 24, onboth mandatory basis andvoluntary bases.2. Strong support from localgovernments for energy codecompliance enforcement.3. Local governments lead byexample with their own facilitiesand energy usage practices.4. Local governments lead theircommunities with innovativeprograms for energy efficiency,sustainability and climate change.5. Local government energyefficiency expertise becomeswidespread and typical.12.4 STRATEGIESGoal ResultsAt least 5% of California’s local governments (representing at least 5% of CAtotal population) each year adopt “reach” codes.By 2020, the majority of local governments have adopted incentives ormandates to achieve above-code levels of energy efficiency (or DSM) in theircommunities, or have led statewide adoption of these higher codes.The current rate of non-compliance with codes and standards is halved by2012, halved again by 2016, and there is full compliance by 2020.The energy usage footprint of local government buildings is 20percent below2003 levels by 2015 and 20% below 1990 levels by 2020.By 2015, 50% of local governments have adopted energyefficiency/sustainability/climate change action plans for their communities and100% by 2020, with implementation and tracking of achievements.By 2020, 100% of local governments have in-house capabilities devoted toachieving all cost-effective energy efficiency in their facilities and stimulatingthe same throughout the communities.The three key strategies for local government action are:1. Tap Local Government Authority: Use local government authority over planning and developmentpolicy to maximize energy efficiency in privately owned new construction and existing buildings.2. Lead by Example: Showcase with local governments‘ facilities achieving economic energy efficiency,reducing CO 2 emissions, and showcasing promising energy efficiency, DSM and renewables productsand practices.3. Community Leadership: Local governments lead their communities to support clean energy goals.There are five important associations of localgovernments that are key to these strategies:the California State Association of Counties(CSAC), League of California Cities (League),Local Governments for Sustainability (ICLEI),the Institute for Local Government (Institute),and the Local Government Commission (LGC).A task force should be formed consisting ofleaders from each of these organizations, theCPUC, the Energy Commission, and utilities todevelop and implement the strategies listed forLocal Government listed in this Plan.LOCAL GOVERNMENT SECTION 12 – PAGE 86


12.5 IMPLEMENTATION PLANGoal 1: Local governments are leaders in adopting and implementing “reach” codes.Local governments can adopt building standardsmore stringent than state and federal mandates.As mentioned in the residential ZNE discussionabove, over the past year both the City of SanFrancisco and the City of Los Angeles haveadopted Green Building Ordinances for newbuildings in the respective cities. However, withover 400 cites and counties in the state,relatively few local governments have adoptedlocal ordinances that exceed Title 24requirements. Much more can, and should, bedone at the local level.In addition, local governments can adopt ―pointof sale‖ requirements. For example, the City ofBerkeley for over two decades has hadresidential and commercial building ordinancesrequiring basic efficiency improvements,triggered at the time of property sale orsignificant renovations. Sacramento and SanFrancisco have applied similar requirements atvarious times.Several foundational activities will assist local governments in this effort:• Development of model (mandatory)local government codes, ordinancesand programs that local governmentscan modify as needed, adopt, andimplement. These would include tiersof codes beyond Title 24 (see theResidential and Commercial Chapters.)• Development of sample localordinances for point-of-sale and otherpoint-of-transaction energy efficiencyrequirements and building energyratings that must be disclosed at thesepoints. (This strategy may requireadditional legal authorization.)• Development of sample localgovernment programs to rewardprojects that voluntarily exceed stateand local minimum energy codes byexpedited permitting, entitlementapproval processes, favorable feestructures, and other favorable actionsfor qualifying green buildings anddevelopments.• Focused and sustained outreachsupport for local governments to informthem about the model standards andordinances and provide assistance indeveloping, adopting, andimplementing ―reach‖ standards.• Networking tools to allow localgovernments on a peer-to-peer basis toshare information and experiences onadopting and implementing ―reach‖standards and programs.• Policies that support utility efforts toassist local government developmentand implementation of ―reach‖standards or point of sale ordinances.• Leadership recognition of electedofficials and local governments thatadopt and implement ―reach‖ standardsand other programs.• Linkage of emission reductions from―reach‖ standards and programs toCARB‘s AB 32 implementationstrategies.LOCAL GOVERNMENT SECTION 12 – PAGE 87


Strategies1-1: Develop, adopt andimplement model buildingenergy codes (and/or othergreen codes) more stringentthan Title 24’s requirements,on both a mandatory andvoluntary basis; adopt one ortwo additional tiers ofincreasing stringencyGoal 1: “Reach” CodesImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Develop model codes and Expand percent of cities andtiers in conjunction withcounties adopting codes;existing energy and green monitor effectiveness andbuilding rating systemsupgrade model codesGain consensus of leadingdesigners and builders on“reach” levelsLaunch statewide campaignfor adoptionLong Term2016 − 2020Expand to statewide program1-2: Establish expeditedpermitting and entitlementapproval processes, feestructures and other incentivesfor green buildings and otherabove-code developmentsDevelop sample programsEnact needed local lawsPut implementing processes,fee structures, and otherincentives in place statewideby 12/2011Ongoing improvement andrefinementOngoing improvement andrefinement1-3: Develop, adopt andimplement model point-of-saleand other point-of transactionsrelying on building ratings toincrease efficiency in existingbuildingsDevelop model codes andprograms in 2009Launch pilot programs in2010Implement statewide buildingenergy ratings disclosuresystem by 6/2012Implement requirementsbeyond disclosure, such asratings and/or energyupgrades at sale ofproperties by 1/20131-4: Create assessmentdistricts or other mechanismsso property owners can fundEE through local bonds andpay back on property taxes;develop other local EEfinancing tools1-5: Develop broad educationprogram and peer-to-peersupport to local govt’s to adoptand implement model “reach”codes and/or point of salepoliciesDevelop model mechanismsfor funding sourcesEstablish model loanmechanismsLaunch in pilot citiesFund statewide energyefficiency liaison to local gov’tassociationsDevelop informationcampaign on mechanics andbenefits of model programs,targeting local gov’t decisionmakersand communityleadersEstablish leadershiprecognition programsExpand percent of cities andcounties adopting localfinancing mechanismsExpand content andgeographical reach ofinformation campaignExpand statewideOngoingLOCAL GOVERNMENT SECTION 12 – PAGE 88


Strategies1-6: Link emission reductionsfrom “reach” codes and similarprograms to CARB’s AB 32program and to local gov’tCEQA responsibilities1-7: Develop energy efficiencyrelated“carrots” and “sticks”using local zoning anddevelopment authorityImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015CARB adopts regulationIdentify best practices andproviding local gov’t emission incorporate into localreduction credit for “reach” programs and policiesstandardsState Attorney General andOffice of Planning &Research provide guidanceon using CEQA authority totarget energy and GHGsavings in LG developmentauthorityPlan approaches by 12/2009.Launch approaches by12/2010Approach in place by 6/2009.Requirement in place by12/2010Ongoing refinement ofapproaches based onfeedback fromimplementation effortsLong Term2016 − 2020OngoingOngoing implementationGoal 2: Strong support from local governments for energy code compliance enforcement.Under state law, local governments, throughtheir building permit and inspection processes,are responsible for enforcement of Titles 20 and24. While there is inadequate understanding ofcode compliance rates and the resultingdegradation in performance, more than 30percent of the technical energy savings fromCalifornia‘s statewide energy codes may be lostdue to non-compliance. A 2007 study estimatednoncompliance rates with the EnergyCommission statewide building measuresranging from 28 to 100percent and withappliances standards from 0percent to 63percent. 70Generally, the lack of financial resources (e.g.,funds to send an inspector to training) is abarrier to enforcement. Inspections andenforcement are funded through local permitfees. However, local governments are oftenreluctant to raise fees to cover full costs ofstandards compliance if those fee levels wouldrise above neighboring jurisdictions.A comprehensive, adequately funded statewideprogram for state building code compliance thatstrongly supports local government complianceresponsibilities is key to obtaining full savingsfrom California‘s aggressive building andappliance standards.Goal 2: Code ComplianceStrategies2-1: Statewide assessment oflocal government codeenforcement andrecommendations for changeImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Develop and conductOngoingassessment; develop set ofrecommended improvements(e.g. via compliance tools,information, training, modifiedstandards, and/or funding)Long Term2016 − 2020OngoingLOCAL GOVERNMENT SECTION 12 – PAGE 89


Strategies2-2: Dramatically improvecompliance with andenforcement of Title 24,including HVAC permitting andinspection requirements(including focus on peak loadreductions in inland areas)2-3: Local inspectors andcontractors hired by localgovernments shall meet therequirements of the energycomponent of theirprofessional licensing (as suchenergy components areadopted)Implementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Develop strategiesExpand statewideTest pilot programs in 2010Strengthen compliancePut initial improvements insolutionsplace statewide by 12/2010Update and/or incorporateenergy components in licensingrequirementsAdopt requirementsOngoingLong Term2016 − 2020OngoingOngoingLOCAL GOVERNMENT SECTION 12 – PAGE 90


Goal 3: Local governments lead by example with their own facilities and energy usage practices.Cities and counties can lead by example by embracing energy efficiency in their facilities. There are manyexamples of local governments undertaking major actions to reduce energy usage in their own facilities.Examples of specific goals that local governments can set for their buildings include:Requiring all local government owned and leased buildings to be benchmarked, sub-metered,commissioned by 2012, and upgraded to the next level of energy efficiency by 2015.Requiring LEED Certified and LEED Silver (or their equivalents) for all new local governmentfacilities.Requiring LEED Existing Building Silver for existing facilities, by a specified date.Achieving all cost-effective or economic energy efficiency in their facilities (e.g. 20-40percentefficiency gains), by a specified date.Requiring commissioning for new buildings, and re-commissioning and retro-commissioning ofexisting buildings.A sustained, comprehensive effort to extend these efforts statewide should be undertaken. In order toaccomplish this goal, providing local government facility personnel with additional staff, expert assistanceand/or technical resources is needed.Strategies3-1: Adopt specific goalsfor efficiency of local newand existing governmentbuildings3-2: Require commissioningfor new buildings, and recommissioningand retrocommissioningof existingbuildings3-3: Improve access tofavorable financing termsthat create positive cashflow from energyefficiency/DSM savingsGoal 3: Lead by ExampleImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Showcase innovative EE andother DSM relevant to achievingZNE buildingsImplement local policies forLEED new construction andexisting buildingsBenchmark existing buildingsagainst ratings such as EnergyStar and its Portfolio ManagerTest commissioning programs onselected high-use buildingsAdopt mandatory benchmarkingand commissioning requirementsfor local government facilitiesstatewide by 12/2011Identify various financing toolsavailable to local governments.(e.g. such as expanding theEnergy Commission’s loan fund,seeking federal or state supportfor lower interest rate loans,third-party financing, and utilityon-bill financingModify as appropriate toincrease utilizationComplete benchmarkingand LEED policyimplementationLaunch statewideprogramOngoing refinement andimprovementOngoing implementationLong Term2016 − 2020Implement statewideOngoingOngoingLOCAL GOVERNMENT SECTION 12 – PAGE 91


Strategies3-4: Promote local gov’tadoption of policies for abudget line item fir energymanagement or otheroptions that allow energyefficiency cost savings to bereturned to the host facilityor department and/or as arevolving fund for additionalenergy projects3-5: Develop an innovationincubator that competitivelyselects energy design,technology, and systeminitiatives for localgovernment pilot projectsImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Explore and document modelOngoing implementationpolicies and mechanismscomplete by 12/2009Implementation plan in place by6/2010 for mechanismswarrantedCoordinate this approach withResearch & TechnologyactivitiesDevelop and begin first projectsby 12/2009Ongoing refinement andexpansionLong Term2016 − 2020OngoingOngoingGoal 4: Local governments lead their communities with innovative programs for energyefficiency, sustainability, and climate change.Local governments are in a unique position toimplement innovative, long-term, cross-cuttingprograms promoting energy efficiency,sustainability, and reduced carbon emissions.Their ability to interact with businesses andresidents to work towards integrated sustainablecommunities is unique and needs to be engagedfar beyond current efforts, to support California‘saggressive energy efficiency and global warminggoals.There are various resources available to aidlocal governments. Non-profit associations, forprofits,state agencies, utilities and others cangive technical assistance; offer targeted onlineand written tools; and share an over-archingvision and best practices in conferences andworkshops. One example of an innovative localgovernment initiative is the Cambridge EnergyAlliance effort in Cambridge, MA. The Allianceis a city-sponsored non-profit group establishedto identify and arrange financing forunprecedented levels of gas, electricity andwater savings by retrofitting buildings andinstalling renewable technologies across thecommunity. 71 Another effort is CaliforniaSustainable Communities Initiative sponsored bythe Department of Conservation (DOC) whichseeks to expand the DOC‘s recycling experiencewith local governments into a morecomprehensive statewide initiative that promotesinnovative and coordinated programs for energyefficiency, sustainability, and climate change atthe local level, using public-private partnerships.Additionally, local governments can and docommit themselves and/or their communities toexternally developed relevant commitments,such as the United Nation‘s UrbanEnvironmental Accord or the Local Governmentsfor Sustainability (ICLEI) Cities for ClimateProtection campaign.Local governments also have a number ofregulatory carrots and sticks including:community design requirements; land use andzoning policies that promote energy efficiencyand smart growth; requiring redevelopmentagencies to address energy efficiency indevelopment contracts, and; negotiating energyefficiency into developer agreements on majorprojects.Recent legislation in CA has increased the roleof local government in facilitating efficiencyinvestments and ensuring sustainable planning.AB 811 (Levine, 2008) authorizes cities toprovide low-interest loans to property ownerswith long-term repayments added to their annualproperty tax bills to help finance energyefficiency improvements and distributedLOCAL GOVERNMENT SECTION 12 – PAGE 92


generation installations. 72 Similarly, SB 375(Steinberg, 2008) requires metropolitan planningorganizations to include ―sustainablecommunities strategies‖ in their regionaltransportation plans and creates specifiedincentives for the implementation of suchsustainable communities strategies. 73The success of this goal will require not onlyresources from the state, utilities, non-profitsand the business community but thecommitment of local governments and theirleaders to use their leadership and legalauthority in new and often challenging ways. Anecessary step is to support organizationsserving local governments at the state level.Strategies4-1: Local governmentscommit to cleanenergy/climate changeleadershipGoal 4: Community LeadershipImplementation Plan and TimelineNear TermMid Term2009 – 20112012 − 2015Assist initial set of localgovernments in commitments;develop and communicateappropriate messages(e.g., League of California Cities; CaliforniaState Association of Counties; Institute for LocalGovernment), regional levels (e.g., Associationof Bay Area Governments, Association ofMonterrey Bay Area Governments, San DiegoAssociation of Governments, SouthernCalifornia Association of Governments), andnon-profits so they can leverage their activitieswith other local governments on energy andenvironmental issues. This includes: creating astatewide liaison resource by local governmentfocused on energy efficiency programs;enhanced and expanded technical assistance;targeted online tools; information on bestpractices; and conference and workshopactivitiesExpand local governmentparticipation statewideLong Term2016 − 2020Ongoing implementation4-2: Use local governments’general plan to promoteenergy efficiency,sustainability and climatechange4-3: Statewide liaison toassist local governments inenergy efficiency,sustainability, and climatechange programsDevelop model General PlanamendmentsLeaders among localgovernments adopt policies inGeneral Plan elementsPublicize to other localgovernmentsProvide energy efficiency liaisonfunded via IOU ratepayer funds.Provide climate change liaisonas part of ARB AB32 activitiesExpand inclusion in generalplans. By 2015, inclusion inall local gov’t plansOngoing implementationOngoing implementationOngoing implementation4-4: Develop local projectsthat integrate energyefficiency, DSM, andwater/wastewater end usesIdentify opportunities andchallenges for moreenergy/environmentallyintegrated development andinfrastructureDevelop and implement pilotprojects, such as the CaliforniaSustainable CommunitiesInitiativeExpand implementationOngoing implementationLOCAL GOVERNMENT SECTION 12 – PAGE 93


Goal 5: Local government energy efficiency expertise becomes widespread and typical.Many local governments do not have adequate dedicated staff or resources to move proactively onenergy efficiency in their own or community buildings. They also often lack capacity or awareness topromote building and zoning codes that would dramatically accelerate green, efficient buildings withintheir jurisdictions.The workforce education and training strategies outlined elsewhere in this Plan are one vehicle forattacking these issues. Another is the standardization of tiered voluntary building codes across the state(as described in Strategy 1) which will be easier for local governments to embrace and promote than ifcodes are developed independently each time.Even so, a focused effort on development of local government energy efficiency expertise is critical to thestate‘s energy efficiency goals. Programs such as the regional technical assistance and education centersin Marin, Ventura, and Humboldt that work with local governments, schools, and special districts in theirareas, are an example of effective training programs.Strategies5-1: Create a menu of products,services, approved technologies andimplementation channels to guidelocal governments that currently lackdeep expertise in energy efficiencyGoal 5: Local Government Energy Efficiency ExpertiseImplementation Plan and TimelineNear TermShort Term2009 – 20112012 − 2015Identify menu by 9/2009Ongoing implementationPlan for provision of menu in place by12/2009Begin to provide menu content by3/2010Long Term2016 − 2020Ongoingimplementation5-2: Develop model approaches toassist local governments participatingin regional coordinated efforts forenergy efficiency, DSM, renewables,green buildings, and zoningComplete model approaches (e.g. jointpowers authorities, memoranda ofunderstanding, regional councils) by2009Leader governments begin pilots.Communicate information on a peerto-peerbasisExpand outreach on benefitsof regional approaches towider range of localgovernmentsIdentify funding sources tosupport wider utilizationOngoingimplementation5-3: Establish a statewide effort tofacilitate peer-to-peer learning, suchas a “local champions” program or agovernor’s invitation-only localgovernment leaders’ summitIdentify the most suitable peer-to-peerlearning vehicle by 6/2009.Launch peer-to-peer learning vehicleby 12/2009Ongoing refinement andimprovementOngoingimplementation5-4: Create a statewide technicalassistance program for localgovernments, including peer-to-peerexpertise exchangeDevelop program in 2009 Implement statewide in 2010 OngoingimplementationLOCAL GOVERNMENT SECTION 12 – PAGE 94


13. LIGHTING13.1 VISIONBy 2020, advanced products and best practices will transform the California lighting market. Thistransformation will achieve a 60-80 percent reduction in statewide electrical lighting energyconsumption by delivering advanced lighting systems to all buildings.13.2 PROFILELighting comprises approximately one-fourth ofCalifornia‘s electricity use; 74 therefore, thewidespread use of energy efficient lighting is acritical element in the Strategic Plan. California‘sAB 1109 (known as ―the Huffman Bill‖ * ) willphase-out traditional, low efficiencyincandescent lamps by 2018 and help advancethe Strategic Plan‘s goals. However, supportingstrategies and implementation activities areneeded to achieve the higher goal of a 60 to 80percent reduction in energy usage for lighting.Each goal in this chapter has elements relevantto three market sectors: residential,nonresidential and exterior lighting.Residential. Lighting comprises 22 percent ofelectricity use in the average California home(see figure). 75 With more than 11 million homesand 500 million light sockets in California, thereis substantial potential for energy savings andpeak demand reduction. 76 For example,incandescent lamps in the 10-15 lumens perwatt range are the predominant technology inresidential applications. Switching all residentialsector lighting to technologies using 40 lumensper watt would achieve a 50 percent reduction inenergy use. 77Average California Residential Electricity Consumptionby End Use*Lighting 22%Refrigerators &Freezers19%T V, PC & OfficeEquipment15%Miscellaneous 11%Water Heating 3%Space Heating 4%Laundry 5%Dishwashing &Cooking 5%Pools & Spas 6%Air Conditioning 10%*Source: California Long-Term Energy Efficiency Strategic Plan, 2008Non-Residential. Nonresidential lighting covers awide range of applications including task lightson office desks and overhead lighting inindustrial warehouses. 78 In the commercialsector, lighting accounts for approximately 35percent of electricity use (see figure below).Average California Commercial Electricity Consumptionby End Use*Office Equipment 7%Ventilation 12%Other 8%Lighting (Interior &Exterior) 35%Refrigeration 13%Cooling 15%*Source: California Energy Commission, California Commercial End-Use Survey, 2006*See Glossary at end of document for definitions of termswith asterisk.California has 1 billion square feet of commercialoffice space, most of which was built prior to thestate‘s Title 24* regulations. Installing existingbest practice* lighting retrofits in theseapplications (instead of simple ballast and lampLIGHTING SECTION 13 – PAGE 95


eplacements) will yield substantial savings 79and can enhance worker productivity byimproving the visual environment. Products foroffice task ambient lighting systems can save40-60 percent over current practices —approximately twice the energy, peak demandand CO 2 emissions compared to current Title 24codes of 0.9 watts per square foot. 80Exterior. Exterior lighting includes parking lot,area, walkway and security lighting. In thenonresidential sector, exterior lighting usagecomprises 1.4 percent of California‘s totalelectricity use, much of which occurs duringlimited occupancy periods. 81 Through acombination of sensors, occupancy controls andCommercial office spaces typically rely on astandard practice* lighting design approachknown as “general lighting,” where ceilingmountedlights supply uniform lighting levels foran entire office interior. This approach results inwasted energy, increased cooling costs andsub-par lighting for human performance. Bestpractices include a high performance tasklighting retrofit in worker specific areas, reducinglighting energy use and increasing the quality oflight in the office space.other technologies, end users can save moneyby reducing energy usage by more than 50percent. 82 Such retrofits are one of manyrelatively untapped opportunities to reducelighting energy demand and deliver identical orimproved service. 83Substantial reductions in lighting energy demand are contingent upon successfully addressing ornavigating around barriers within the lighting market. These impediments include:• Policy Barriers that conflict with theaccelerated adoption of best practicelighting technologies and systemsrequired to meet the state‘s ZNE goals;• Lack of knowledge regarding bestpractice lighting technologies amongspecifiers, installers and other lightingprofessionals;• Proprietary protocols that can limitinnovation and interoperability of lightingsystems and integration with otherbuilding and network systems;• Lack of retailer and consumerawareness about lighting‘s invisiblebenefits, such as contributions to humanperformance, well-being and energy andcost savings;• Cost constraints, including the challengeof encouraging end users to purchaseand install best practice lightingtechnologies and systems;• Gaps in the Research, Developmentand Demonstration (RD&D)*infrastructure that cause redundanciesand unnecessary delays in rapiddeployment of best practice technologiesto the market.LIGHTING SECTION 13 – PAGE 96


13.3 GOALSGoal1. Develop and implement coordinated policies,procedures, and other market interventions thateliminate barriers, accelerate lighting markettransformation* in California and provide incentives forbest practice lighting technologies and systems.2. Define and advance best practices for design,installation, operation and maintenance of integratedsystems* to achieve sustainable* lighting solutions forall spaces.3. Create widespread end user demand to purchaseand use best practice lighting technologies andsystems.4. Develop research, development and demonstration(RD&D) networks to create, test, and deliver thelighting solutions needed to transform California’slighting market achieve ZNE goals.Goal ResultBy 2020, existing policies and procedures in California willenable lighting technologies to contribute to zero net energy(ZNE)* consumption with negligible negative impacts on theenvironment.By 2020, 100percent of new and retrofit lighting installationswill meet best practices. End users will receive education andtraining to maintain optimal performance of installationsthroughout their useful lives.By 2020, transform consumers’ lighting preferences to bestpractices as demonstrated by an 80% decrease in perceivedbarriers to adoption and a 50% decrease in sales of inefficientlighting products in key market segments (over 2010baselines).Create a broad RD&D portfolio of technologies that willsupport a 60-80% statewide reduction in electrical lightingenergy consumption by 2020.The goals described in this chapter envisiondefining, creating, testing and deliveringadvanced lighting products and best practices toan educated pool of end users in a supportivepolicy environment. Best practices are definedas coordinated technologies, systems anddesign approaches that typically provide savingsof 25-50 percent over standard practices whileavoiding negative environmental impacts. Bestpractices may change over time as improvedcomponents, technologies and designapproaches become available. The four goals inthis chapter together provide the foundationalsupport for best practices to make them thedefault lighting choice for California end users.In California, lighting technology, design andinstallation is regulated primarily by theCalifornia Energy Commission‘s (CEC) Title 20*and Title 24 appliance and building codes (aswell as by the federal Energy Policy Act*). Suchcommand and control measures — includinglocal government reach codes* — can advancelighting market transformation but cannotachieve the goals without interventions thatbring advanced lighting technologies and bestpractices to the marketplace and support rapidadoption by end users.As shown in the figure below, this chapter setsforth a comprehensive strategy to bring togetherall aspects of the lighting market in California:public policy and regulations, building designers,owners, managers and occupants, consumersand technology developers. This chapter will setthe market on the path to achieve the targeted60-80 percent reduction in statewide lightingelectrical use thereby furthering the goal of ZNEbuildings in California.LIGHTING SECTION 13 – PAGE 97


The figure above represents the interconnectedness of the four lighting goals. To achieve the vision for a transformed lightingmarket in California, all four goals have to work in synergy to continuously define, create, test and deliver advanced lighting productsand best practices to an educated pool of end users in a supportive policy environment.13.4 STRATEGIESCalifornia can achieve a 60-80 percent reductionin statewide lighting energy use by 2020. TheHuffman Bill requires California to ―reduceaverage statewide electrical energyconsumption by not less than 50 percent fromthe 2007 levels for indoor residential lighting andnot less than 25 percent from the 2007 levels forindoor commercial and outdoor lighting by2018.‖ This critical piece of legislation will moveCalifornia toward its goals but will not achievethe 60-80 percent reduction in lighting energyconsumption necessary to truly transform thelighting market.Advanced lighting technologies* and designsolutions – such as integrated controls,LIGHTING SECTION 13 – PAGE 98


daylighting* and task/ambient lighting systems –can deliver the additional savings necessary toachieve this transformation. 84, 85 This will requireshifting incentives to encourage best practices,enhancing coordination among regulatoryagencies and creating more effective financingmechanisms for lighting retrofits.To effect rapid change in California‘s lightingmarket, numerous stakeholders — beyond theCPUC and IOUs — will need to participateactively and collaborate effectively. With a vastarray of players involved in the lighting market— such as the CEC‘s Public Interest EnergyResearch (PIER) Program*, manufacturers,distributors, retailers, Title 24 consultants,specifiers and contractors, lighting designers,architects, environmental groups, constructioncompanies, building engineers, industry andprofessional groups, utilities, local buildingofficials, building owners/managers, consumersand local, state and federal governmentagencies — it is essential that the industry‘sleaders continue their involvement past thedevelopment of these goals and strategies andhelp implement the actions needed for the next10 years and that new leaders continue tobecome engaged as the process movesforward.IMPLEMENTATION PLANGoal 1: Develop and implement coordinated policies, procedures, and other market interventionsthat eliminate barriers, accelerate lighting market transformation in California and provideincentives for best practice lighting technologies and systems.There are many untapped lighting efficiencyopportunities that could yield significant energysavings in California if comprehensive andinnovative policies are implemented. Policy canboth directly and indirectly affect availability andthe use of best practice technologies.California‘s major policy-making institutions —including the CPUC, CEC, Air Resources Board(ARB)* and local governments* — must committo integrated policies that transform California‘slighting market away from standard practices tobest practices at a rapid pace.To date, the majority of the utilities‘ lightingprograms have focused on widget swap-outstrategies (such as replacing incandescentlamps with CFLs). With the new state andfederal lighting standards, utility programspromoting basic CFLs will provide littleincremental benefit. 86 Future efforts in lighting,including ratepayer funded programs, shouldfocus on systems-based opportunities thatachieve savings beyond standards. This mayrequire reexamining the CPUC‘s current 3-yearfunding cycle to potentially allow longer-termfunding and targets.California‘s key regulatory agencies mustcoordinate on intermediate steps toward lightingmarket transformation and ZNE policies and forimprovements to codes and standards. Inaddition, by creating economies of scale andemphasizing lighting in the state‘s ongoinggreening efforts, governments at the state,regional and local levels can help reduce initialmarket barriers through leadership by example.To transform the market, policymakers musthelp end users afford or finance best practicelighting solutions. Additional financialmechanisms to address market barriers mustalso be created to spur adoption. Relatedsolutions — such as incorporating third-partyfunding into large scale on-bill financingprograms and advancing statewide participationin AB 811*-authorized financing mechanisms -could enable a broader base of Californians topurchase and install best practice lightingtechnologies. California should examine ways toalign incentives such that lighting efficiency ismaximized prior to awarding incentives foronsite generation (e.g., California SolarInitiative).Policies should be developed to ensure that bestpractice lighting systems avoid unintendednegative environmental consequences byminimizing the ecological impacts of eachtechnology throughout its lifecycle — fromdesign through disposal. California must supporta comprehensive view of energy efficient lightingsystems that includes not only their energysavings and financial implications but also theirenvironmental costs.LIGHTING SECTION 13 – PAGE 99


The strategies to achieve this goal include:• Aligned Priorities: Match public policyand utility energy efficiency programpriorities to statewide lighting goals.• Unified Vision: Build a common visionamong key state regulators and aligncodes and standards to advanceCalifornia‘s lighting markettransformation.• Financial Support: Create financialincentives and supportive policies toavoid trapped lighting energy savingsopportunities.• Sustainability: Minimize environmentalimpacts of each lighting technologythroughout its lifecycle (production, useand disposal).• Basic CFL Incentive Phase-out:Prepare suppliers for a shift in programincentives away from CFLs and towardthe next generation of high efficiencylighting.Strategies1-1: Match state laws,policy and regulations withutility energy efficiencyprogram priorities andstatewide lighting goalsGoal 1: Policy for TransformationImplementation Plan and TimelineNear Term2010 – 2012Explore implications of currentcost/benefit methodologies onIOUs’ ability to incorporateadvanced lighting products intotheir programsExplore implications of IOUprogram cycles on ability toreach lighting goalsMonitor lighting legislation,regulations and industrydevelopments with the aim ofincorporating additional lightingtechnologies and best practicesinto the next utility programcycle (including residential lowincome)Design and test innovativeprogram delivery strategies toaccelerate markettransformationIncorporate 2010-2012 EM&Vresults into policies andprograms for future EE programcyclesMid Term2013 − 2015Adjust methods as appropriateAdjust cycles as appropriateContinue monitoring legislation,regulations and industrydevelopments; incorporate newtechnologies and best practicesinto the next utility programcycleIncorporate cost-effective pilotprograms from prior programperiod into core programs;continue pilot projectsOngoingLong Term2016 − 2020Adjust methods asappropriateAdjust cycles as appropriateOngoingIncorporate cost-effectivepilot programs from priorprogram period into coreprograms; continue pilotsOngoingLIGHTING SECTION 13 – PAGE 100


Strategies1-2: Build a common visionfor advancing lightingmarket transformationamong key state agenciesImplementation Plan and TimelineNear TermMid Term2010 – 20122013 − 2015Engage statewide institutionalstakeholders in collaborativeefforts to agree on steps towardlighting market transformationand ZNE goalsAlign lighting-related codes &standards, green building ratingsystems and industry normsand practices with ZNE policyDevelop standards for all publicbuildings to encourageleadership by example insupport of ZNE goalsReview and revise steps asneededIdentify and resolve nextprioritiesImplement ZNE standards inpublic buildingsLong Term2016 − 2020Review and revise steps asneededIdentify and resolve nextprioritiesOngoing1-3: Create financialincentives and supportivepolicies to avoid trappedlighting energy savingsopportunities and makebest practice lightingsolutions affordableIdentify and implement creativefinancing mechanisms,including those that reducebarriers to lifecycle investmentstrategiesIdentify and eliminate barriersto on-bill financing andincorporate third-party financinginto IOU program offeringsTarget statewide participation inAB 811-authorized financingmechanisms (such as PropertyAssessed Clean Energy*[PACE] bonds)Advocate to raise percentageabove T24 (including lighting)required to receive funding fromCalifornia Solar Initiative (CSI)to 30%Increasingly integrate fundingfor demand response*, energyefficiency and renewableenergy projectsIncrease the adoption rate oflifecycle investment strategiesExpand on-bill financingprogramOngoingAdvocate for 60% above T24 toobtain CSI incentivesOngoingIncrease the adoption rate oflifecycle investmentstrategiesExpand on-bill financingprogramOngoingAdvocate for 90% above T24to obtain CSI incentivesOngoingLIGHTING SECTION 13 – PAGE 101


Strategies1-4: Minimizeenvironmental impacts ofeach lighting technologythroughout its lifecycle(production, use anddisposal).1-5: Coordinate phase outof Utility incentives forpurchase of CFLs.Implementation Plan and TimelineNear TermMid Term2010 – 20122013 − 2015Allocate RD&D funding toincrease sustainability of bestpractice lighting systems anddetermine long range fundingneedsDevelop cost-effective,convenient methods to collectand recycle any end of lifelamps and test as pilotprogramsEstablish hazardous materialscontent specifications for alllighting products in IOUprogramsDevelop and implementvoluntary manufacturing andlabeling standards that includesustainability indicesIncorporate measurement ofavoided GHG emissions alongwith kW/kWh into EM&Vactivities/reports to encouragedeeper energy savingsEnsure that big box and homeimprovement retailers such asWal-Mart and Home Depot areready to stock Energy star pricediscounted CFLs in CA as IOUsphase out CFL programsUtilities engage in negotiationswith manufacturers andretailers to buy-down pricesand stock the next generationof high efficiency lightingDevelop and implement fundingplanContinue successful recyclingprogramsImplement specificationsDevelop and implementadditional standards andcontinue recruitingmanufacturers to participateRefine and continue GHGeffortsOngoingLong Term2016 − 2020Expand funding, based onresults of prior cyclesOngoingOngoingContinue implementingstandards and recruitinglighting manufacturers toparticipate in standardsRefine and continue GHGeffortsCompleteLIGHTING SECTION 13 – PAGE 102


Goal 2: Define and advance best practices for design, installation, operation and maintenance ofintegrated systems to achieve sustainable lighting solutions for all spaces.Whole building design is a key element of theStrategic Plan, and best practice lightingsystems are a foundational component of wholebuilding design strategy. Best practice lightingtechnologies, systems and solutions mustbecome standard practice.Sample Best Practices in Lighting (2010)Task/Ambient Lighting with Controls inCommercial OfficesIntegrated Classroom Lighting SystemsInterior Electronic High-Intensity Discharge(HID) lamps and ballastsLight-Emitting Diode (LED) Downlights forResidential BuildingsLight-Emitting Diode (LED) Downlights forCommercial BuildingsSmart Bi-level Exterior LightingIt is the nature of best practices to evolve; bestpractice lighting must be defined, updatedfrequently and promulgated to achieve thelargest energy savings possible. † Identifyingsuccessive generations of lighting best practicesmust be part of RD&D efforts and pilot projects.These technologies and systems should bedemonstrated and pilot tested, and postoccupancydata should be collected to optimizeperformance and improve energy savingsestimates and ensure consumer acceptance.Incentives should be provided to California‘smajor lighting end users should be to encouragebenchmarking of energy lighting use over time toenable quantification and tracking of lifecycleimpacts of these enhanced codes and buildingperformance improvements.Best practices should then be incorporated intoutility programs and into pattern books* to assistlighting professionals in improving the qualityand efficiency of lighting statewide.Lighting professionals must be trained andcertified in the proper specification, installationand maintenance of the most up-to-date bestpractice technologies and systems. Certifiedlighting professionals must become the norm;contractors and electricians must be encouragedto obtain lighting certifications, trained tointegrate efficient technologies and designs intolighting systems for both new construction andretrofit applications, and rewarded for doing so.End users must be educated regarding the longtermbenefits of best practice technologies tomove the market away from decisions basedupon first cost* and simple payback* (theamount of money spent on purchase/installationand amount of time to recover those costs) andtoward lifecycle cost* assessments.In parallel, best practices must also beincorporated into building codes and standardsto ensure their widespread adoption. The currentmulti-year cycle for updating California‘s buildingcodes (including Title 20 and Title 24) is too slowto enable the ongoing and rapid adoption ofadvanced lighting technologies and systems intocode. The current process for changing thesecodes should be examined to identifyopportunities to streamline and integrate bestsolutions on an ongoing basis.Strategies to achieve best practices must betailored to major space types and customersegments. For example, low-income customersin particular have cost constraints that mayplace some advanced technologies and bestpractices out of reach. While these customersmay not be on the leading edge of markettransformation, strategies must be developed tomake advanced technologies and best practicesavailable to all market segments -- andcontinually move the market forward.† As will be discussed under Goal 4 (RD&D), the CPUC willconvene an advisory body to coordinate research andrelated activities with stakeholders. This body will define bestpractices for lighting and update these definitions annuallyas lighting technologies and systems evolve.LIGHTING SECTION 13 – PAGE 103


Accumulated Energy Savings (GWh)250,000200,000150,000100,000Technical Savings for 6 Sample Best Practice ApplicationsStandard PracticeRetrofitThis figure illustrates the technical potential energy savingsachievable through the pursuit of six example best practicesfor lighting. The difference between the bars represents the“lost opportunity” inherent in the pursuit of standard practicesin lighting efficiency. See Appendix A for the savingsassumptions underlying these analyses.50,000Best PracticeRetrofit-2010 2013 2016 2019CPUC Cycle (yr)The key strategies to identifying, promoting and ensuring best practices include:• Identification and Development:Identify best practices and continuallyupdate in coordination with lightingmarket transformation activities.• Education and Certification: Elevatethe level of professional practice andperformance by expanding access tohigh-quality new and existing education,training and certification programs.• Codes and Standards: Include lightingsystem design improvements in codesand standards and local governmentreach codes.LIGHTING SECTION 13 – PAGE 104


Strategies2-1: Identify best practicesin coordination with RD&Dand lighting markettransformation programs toensure use of highperformancelightingsystems2-2: Elevate the level ofprofessional practice andperformance for designers,architectural consultants,electrical contractors,engineers and otherlighting professionals.Goal 2: Lighting Best PracticesImplementation Plan and TimelineNear TermMid Term2010 – 20122013-2015Identify top best practices formajor space types andcustomer segments (includingresidential low income);achieve 50% of the potentialsavings identifiedDevelop online pattern booksfor market segments thatrepresent at least 60% of thetotal lighting useDevelop pilot projects thatsupport best practicesInitiate post-occupancyevaluation of 5% of permittedand/or incentivized lightinginstallationsIntegrate best practices withcore utility programs andensure use in at least 50% ofnew projectsIncorporate open sourcelighting communicationsprotocols into best practices,incentives and codesEstablish integration protocolsfor lighting systems with allbuilding systems, smart grid,monitoring and commissioningsystems used in the publicsectorDevelop specifications for 2020lighting best practices bymarket sector for highest endusesin coordination w/RD&DEducate and train lightingprofessionals on evolving bestpractices and how best toexplain their benefits to endusersRequire Lighting Certificationfor designers and contractorswho implement public agencyinstallations/retrofits; encourage30% of private sector projectsto require certificationEnsure understanding andapplication of lighting systemintegration protocols amonglighting professionalsAchieve at least 80% of thesavings potential by switchingto best practicesAdd pattern books to cover atleast 85% of total lighting useOngoingAdjust the percent surveyed,based on 2010-2012 resultsEnsure best practices areused in at least 80% of newprojectsInclude protocols for smartgrid and building systems forlightingExtend integration to 50% ofprivate sectorExpand 2020 specifications to50% of all marketsOngoingExpand system to 50% ofprivate sector projectsOngoingLong Term2016 − 2020Achieve 95%+ of thepotential savings identifiedby switching to bestpracticesAdd pattern books tocover at least 95% of totallighting useOngoingConfirm monitoringcapability built into lightingsystemsEnsure best practices areused in 95% of newprojectsInclude protocols for zeronet energy systems forlighting integrationExtend integration to100% of private sectorExpand 2020 specificationsto 100% of all marketsOngoingExpand system to 100% ofprivate sector projectsOngoingLIGHTING SECTION 13 – PAGE 105


Strategies2-3: Continuously promotelighting system designimprovements to codesand standards based onthe best available field dataand studiesImplementation Plan and TimelineMid Term2013-2015Near Term2010 – 2012Explore opportunities toenhance and accelerateprocess for integrating bestpractices into codes (T20 andT24) and code enforcementDevelop an integratedbenchmarking process thatenables accounting of lightingsavings and encourage 50% ofCalifornia’s major lighting endusers to benchmarkCreate a standard lifecycleevaluation for lighting impacts,including savings calculationtemplate with kW; kWh,Therms, CO2 and fundingsourceEnhance process for integratingbest practices into codes(including enforcement)Optimize the integrated processto cover 80% of major marketsOngoingLong Term2016 − 2020Continue process forintegrating best practicesinto codes (includingenforcement)Optimize integrated processfor 100% of all marketsOngoingLIGHTING SECTION 13 – PAGE 106


Goal 3: Create widespread end user demand to purchase and use best practice lightingtechnologies and systems.Understanding the end user — e.g., CEOs,facility managers, individuals and apartmentmanagers — is a prerequisite for effectiveproduct development and adoption of lightingbest practices.Influencing complex human choices (includingproduct selection and use) for lighting is asignificant challenge and cannot beaccomplished simply by offering a betterproduct. Recent studies published by the CPUCconclude that awareness of energy savingsbenefits alone does not lead to changes inattitudes, beliefs, habits and/or practices. 87Barriers (perceived or actual) have an equalimpact on adoption of energy efficient activity.California has some successful lighting markettransformation experiences. For example, in thecommercial sector, a combination of codes andstandards, education and aggressive utilityprogram promotions reduced new constructionoffice lighting power density by 70 percentbetween 1973 and 2005 (from 4 watts to 1.2watts per square foot). 88 In the residentialmarket, CFLs have achieved saturation inapproximately 20 percent of sockets. 89The general public must be treated as a partnerin lighting market transformation; consumersmust understand, purchase, install and properlyuse energy efficient lighting. Consumer demandfor advanced lighting will also change as endusers develop lighting literacy (througheducation from schools or local governments)and understand how quality of light affectsquality of life (health and performance).Marketing to end users must leverage the mostrelevant outlets and influencers in the valuechain to influence lighting decisions andpurchases. This may include working with IOUcustomer service teams at points of change (i.e.,lease renewals), manufacturers on improvedlabeling, trade unions on best installationpractices, retailers on point-of-sale promotionsor even corporate ―green teams‖* on bottom-upapproaches to large scale corporate lightingupgrades. Relevant marketing messages shouldbe developed for each market segment(including residential low income customers)based upon the specific barriers and motivationswithin each segment.The higher first cost of best practice lightingtechnologies presents a challenge in consumeradoption. Communication strategies must bedeveloped to encourage consumers to look pastfirst cost through promotion of lifecycle costingand non-energy benefits such as reducedmaintenance and improved comfort. For largescale installations, financing programs such asregional incentive guides, outreach partnershipswith lenders and facilitating group purchaseswith public institutions must be explored. Atransformed lighting market will require diversefinancial options built upon understanding endusers and the unique barriers facing eachsegment of the market.Market transformation also requires the supportof the lighting industry. In this highly competitiveindustry, data that can accelerate markettransformation is not often shared. Annualbaseline studies and market segmentationanalyses should be conducted, widely sharedamong all market actors and utilized to createeffective product introduction and marketingcampaigns.Strategic product introduction cannot beoveremphasized. California must examine thesuccess and failure of past market introductions(both inside and outside the lighting industry) todevelop highly effective methods. Marketintroductions require the support of integratedcommunication strategies with marketstakeholders (including advertising, marketingand public relations organizations) to conveyhow lighting affects the human environment andtrigger end user desire for best practice lightingtechnologies and systems.LIGHTING SECTION 13 – PAGE 107


Specific activities to create widespread end user adoption of lighting best practices include:• Marketing and Education: Transformthinking about lighting; teach Californiansto equate quality of light with quality oflife.• Leverage Value Chain: Partner with keymarket actors to promote advancedlighting technologies and achievemaximum energy savings.• Financial Education: Promote financingthat enables a broad range of end usersto purchase, install and maintainadvanced lighting technologies.• Strategic Product Introductions:Strategically introduce next generationproducts and technologies to themarketplace with progressive goals.Strategy3-1: EducateCalifornians toequate quality oflight with quality oflifeGoal 3: Drive End User DemandImplementation Plan and TimelineNear TermMid Term2010 – 20122013 –2015Institute a statewide baselinestudy to assess end user wantsand needs related to lighting aswell as their satisfaction withcurrent lighting technologies andsystemsCreate relevant campaigns andmessages for each marketsegment (including residentiallow income)Initiate lighting literacy educationto the public via localgovernments, schools, etc.Explore options for marketingcampaigns targeting key outlets(including social media, retaildisplays, lighting shows, etc.)Re-evaluate study; share resultsAssess campaigns; use resultsto inform next phaseCoordinate with K-12 schools tointroduce lighting literacy tocurriculumAssess and refine campaignsLong Term2016 –2020Re-evaluate study; share resultsAssess campaigns; use resultsto inform next phaseCoordinate with elementaryschools to introduce lightingliteracy to curriculumAssess and refine campaignsLIGHTING SECTION 13 – PAGE 108


Strategy3-2: Leverage keymarket stakeholdersalong the entirelighting value chainto promoteadvanced lightingtechnologies,systems and bestpractices3-3: Educatedecision makersabout creativefinancialmechanisms thatenable purchase ofadvanced lightingtechnologies,systems and bestpractices3-4: Introduceadvanced lightingtechnologies,systems and bestpractices into themarketplace withprogressive goals.Implementation Plan and TimelineNear TermMid Term2010 – 20122013 –2015Develop partnerships withlighting influencers to coordinatepromotion of prioritytechnologiesWork with IOUs to leveragecustomer service teams andensure efficient lamps areinstalled, not storedLaunch grassroots efforts withcorporate green teams and localenvironmental groups toinfluence lighting leadershipElevate the role of lighting ingreen building rating systems(e.g., LEED)Work with industry on tenantimprovement packages (link tohigh-quality advanced lighting)Explore barriers tosale/purchase/installation of bestpractice lighting technologiesCreate and publicize cooperativeguides that inventory allfinancing options related to bestpractice lighting solutionsCreate education and outreachpartnerships with lendersfocused on financing energyefficient lighting projectsFacilitate group purchasingorders for large institutionsStudy product introductions fromother industries to informstrategies for lighting technologyintroductionsConduct a lighting transition/intervention points study(segmented by building type);use results to accelerate bestpractice adoptionResearch and propose businesscase for best practice lighting(including GHG offsets) to CFOsand key decision makersDevelop and distributepartnership casestudies/demonstration projects.Leverage contractors to helpeducate public about advancedlightingOngoingInstitutionalize changes;maintain and ongoing feedbackloopsDevelop statewide initiatives toincorporate best practices intoretrofit and new constructionprojectsWith RD&D and policy advisors,reassess financial barriers tosale/install and where/how usedUpdate all cooperative financingguides; publicize widelyLeverage system retrofits efforts(such as Whole House) toadvance energy efficient lightingOngoingContinue to study, refine andpromulgate best practicesDevelop reward/awareness forold products and large scalechange outsOngoingLong Term2016 –2020OngoingDevelop lead sharing programsfor all lighting influencersOngoingOngoingOngoingWith RD&D and policy advisors,reassess financial barriers tosale/installUpdate all cooperative financingguides; publicize widelyOngoingOngoingContinue to study, refine andpromulgate best practicesOngoingOngoingLIGHTING SECTION 13 – PAGE 109


Goal 4: Develop research, development and demonstration (RD&D) networks to create, test anddeliver the lighting solutions needed to transform California’s lighting market and achieve ZNEgoals.Major advances in lighting systems and bestpractices are necessary by 2015 for California toachieve the Strategic Plan‘s goals. Research,development and demonstration (RD&D) effortsmust address a wide range of technologicalissues (such as retrofitting lighting applicationsto integrated systems with smart controls anddemand response capabilities) and include largescale, high-profile demonstration projects thatshowcase these solutions.Given the global nature and fast pace of thelighting industry, it is vital that California uses itsposition as a leader and innovator to transformthe international lighting market in order to meetthe aggressive timelines identified herein.To create an effective movement toward lightingmarket transformation, California needs acollaborative lighting RD&D approach thatcoordinates research and related activities withstakeholders to develop a lighting RD&Droadmap for California. Through an associatedadvisory body, the coordinated approach wouldcreate a network of collaborative partnershipsamong lighting industry market actors (in thepublic and private sectors) to develop, refine andimprove statewide best practices. These effortswould focus on rapid market transformation,instead of slow, incremental technologicaladvances.Changing the state of the lighting industry willrequire significant cooperation among all marketactors. For example, stakeholders overseeingpublicly funded emerging technologies programscould seek partnerships with lighting industrypeers to identify opportunities for rapiddeployment of best practice solutions. Theseplayers would help to establish support andfunding and participate in ongoing RD&Dforums, workshops and other activities todisseminate lighting solutions and demonstratedoutcomes. The PIER program has alreadyundertaken noteworthy efforts in this area;Californians should continue to develop andexpand upon these endeavors.Activities could include researching reducinglighting power density and hours of use throughsmart integrated controls and other solutionsthat will help create improved best practices inthe marketplace.Demonstration projects are also a criticalelement of RD&D efforts to develop, assess andconfirm field performance, identifyimprovements, prevent failures, create casestudies and best practices.Demonstration results would be integrated withthe IOUs' Emerging Technologies programs andshared with the lighting industry at large usingthe CPUC web portal* and othercommunications platforms.The CEC's Public Interest Energy Research (PIER) Program, California Institute for Energy andEnvironment* and California Lighting Technology Center* jointly demonstrate innovative interior andexterior lighting systems at sites throughout the state. Using a similar collaborative model, the RD&Dstrategies in this chapter will define best practices, develop the RD&D roadmap and demonstrate thelighting technologies and solutions needed to achieve California's ZNE goals.Strategies to develop a robust, integrated RD&D network include:• RD&D Infrastructure: Establish andmaintain a collaborative, multiinstitutionalstatewide lighting RD&Dapproach.• Smart Technologies: Develop smartlighting* technologies, systems andsolutions that are optimized for energysavings, demand response, renewableenergy and human performance.• High-Profile Demonstrations: Designcreative, high-profile demonstrations ofbest practice lighting solutions that arescalable, targeted and leverage regional,statewide and national projects.LIGHTING SECTION 13 – PAGE 110


Strategies4-1: Establish andmaintain a researchbasedcollaborative,multi-institutionalstatewide lightingRD&D approachNear Term2010 – 2012Establish a lighting RD&Dadvisory group with relevantsubgroups to provide long-termguidance to California in thelighting efficiency andsustainability arenasPublish California’s firststatewide multi-institutionallighting RD&D roadmapEstablish an online resource(integrated with the CPUC webportal) to assist disseminatingRD&D solutions anddemonstration outcomesDevelop ongoing RD&D forumsand workshops to assist indisseminating solutions anddemonstration outcomesEstablish broad support andfunding for RD&D portfolioGoal 4: Integrated RD&D NetworkImplementation Plan and TimelineMid Term2013 – 2015Host ongoing quarterlyroundtables, provide annualreporting on advisory’s findingsConduct annual roundtables torefine and update roadmapCreate initiatives thatsupport/fund manufacturerpartnerships’ developmentConduct ongoing RD&D forumsand workshopsPursue broad funding supportfor RD&D activitiesLong Term2016 – 2020Host ongoing quarterlyroundtables, provide annualreporting on advisory’s findingsConduct annual roundtables torefine and update roadmapOngoingConduct ongoing RD&D forumsand workshopsOngoing4-2: Develop smartlighting technologies,systems andsolutions that areoptimized for energysavings, demandresponse, renewableenergy and humanperformanceResearch and develop solutionsthat lead to a 25% reduction inlighting power density and hoursof use through smart integratedcontrolsExperiment with novel programsto launch new technologieswhich help create improved bestpractices in the marketplaceTarget solutions that create a50% reduction in lighting powerdensityContinue development of newprograms to launch newsystems and technologiesExtend power density reductionsto 60 percent or greaterContinue development of newprograms for new systems andtechnologiesDevelop a research plan forexploring non-energy lightingperformance, includingeconomic, human factors, style,etc.OngoingOngoingDevelop and use marketintelligence on energy usepatterns, best practices andtrends and behaviors withindustry partnersShare findings with market(ongoing)Share findings with market(ongoing)Commission a study to assessbest practices in RD&Dprograms (inside and outside ofthe energy efficiency industry)Establish links to other efficiencyprograms and agenciesEstablish links to other efficiencyprograms and agenciesLIGHTING SECTION 13 – PAGE 111


Strategies4-3: Design creative,high-profiledemonstrations ofadvanced lightingtechnologies that arescalable, targetedand leverageregional, statewideand national projectsImplementation Plan and TimelineNear TermMid Term2010 – 20122013 – 2015Develop a standardizedframework that identifies goals,objectives, field protocols andexpected outcomes fordemonstration projectsEstablish a formal, universalprocess for data collection,analysis (evaluation andmeasurement) and technologyhandoff of RD&D demonstrationprojectsDesign collaborativedemonstration programs that arehighly visible, scalable, targetedand leverage otherdemonstration effortsEstablish formal feedbackprogram that leverages theCPUC web portal to disseminateresults and lessons learned fromdemonstration projectsModify framework based on areview of goals and outcomesOngoingLaunch integrated demonstrationcollaborativeModify efforts based on industryfeedbackLong Term2016 – 2020OngoingOngoingOngoing integrateddemonstration collaborativeOngoingLIGHTING SECTION 13 – PAGE 112


ACKNOWLEDGMENTSThe CPUC would like to acknowledge the invaluable contributions made to the California EnergyEfficiency Strategic Plan by hundreds of workshop participants and others. We note the list ofworkshop participants that comprises Appendix A and cite in particular the following individualsfor contributing to the development of this Strategic Plan.California Public Utilities CommissionCommissioner Dian M. GrueneichTheresa ChoJeanne ClintonCathleen FogelJamie FordyceDavid GamsonKëri BoldingHazlyn FortuneKelly HymesKristina SkierkaNumerous CPUC staff contributed to the Strategic Plan including the following, who served asCPUC point people on particular topics(Lists in alphabetical order by last name)Kay HardyPeter LaiJean LammingAyat OsmanLisa PauloAnne PremoJohanna SevierAva TranPam WellnerMichael WheelerCalifornia Energy CommissionRicardo AmonNorm BourassaMartha BrookBill PenningtonDaryl MillsAmy MorganBill PenningtonJohn SugarJohn WilsonACKNOWLEDGEMENTS SECTION 13 – PAGE 113


ConvenersKarl Brown, California Institute for Energy and EnvironmentPete Canessa, Center for Irrigation Technology, California State University FresnoKarin Corfee, KEMA Inc.Cyane Dandridge, Executive Director of Strategic Energy InnovationsRick Diamond, Lawrence Berkeley National LaboratoryBob Graves, Green TechnologyVal Jensen, ICF, Inc.Debbie McGhee, Project Performance CorporationAimee McKane, Lawrence Berkeley National LaboratoryMichael Messenger, California Energy CommissionCarl Smith, Green TechnologyDavid Zoldoske, Center for Irrigation Technology, California State University FresnoIOU Staff LeadsDon Arambula, SCEAthena Besa, SDG&E/SCGWilliam Miller, PG&ENumerous IOU staff and management contributed to the Strategic Plan including the following, whoserved as statewide IOU leads on particular topics.Gregg Ander, SCEBarbara Cronin, SDG&E/SCGTom DeCarlo, SDG&E/SCGPatsy Dugger, PG&EJohn Fasano, SCERick Hobbs, SoCalGasDavid Jacot, SCEPaul Kyllo, SCEMary O‘Drain, PG&EAngie Ong-Carrillo, PG&EJack Parkhill, SCECarlos Ruiz, SCGCharles Segerstrom, PG&EFrank Spasaro, SDG&E/SCGFrances Thompson, PG&EVinnie Tucker, SCESandra Williams, SDG&EJoy Yamagata, SDG&E/SCGIOU Strategic Planning ConsultantsZiyad Awad, Awad & Company, Inc.Dan Frederick, D. C. Frederick ConsultingDavid Nemtzow, Nemtzow & AssociatesSteve Schiller, Schiller Consulting Inc.OthersAccentureLow Income Oversight Board MembersVinita Thakkar, SDG&EACKNOWLEDGEMENTS SECTION 13 – PAGE 114


LIST OF ACRONYMSAB 32 Assembly Bill 32/California Global Warming Solutions Act of 2006www.leginfo.ca.gov/pub/05-06/bill/asm/ab_0001-0050/ab_32_bill_20060927_chaptered.pdfABAGAssociation of Bay Area Governmentswww.abag.ca.govACAir ConditioningACCAAir Conditioning Contractors of Americawww.acca.orgACEEEAmerican Council for an Energy-Efficient Economywww.aceee.orgACRAssigned Commissioner RulingAHRIAir Conditioning, Heating and Refrigeration Institutewww.ahridirectory.org/ahridirectory/pages/ariDirectoryMain.aspxAIAAmerican Institute of Architectswww.aia.orgAMBAGThe Association of Monterey Bay Area Governmentswww.ambag.orgAMIAdvanced Metering InfrastructureANSIAmerican National Standards Institutewww.ansi.orgASAPAppliance Standards Awareness Projectwww.standardsasap.orgASHRAEAmerican Society of Heating, Refrigerating, and Air-Conditioning Engineerswww.ashrae.orgBBEESBig Bold Energy Efficiency StrategiesThree programmatic initiatives identified by the California Public UtilitiesCommission in Decision 07-10-032BIRABuilding Industry Research Alliancewww.bira.wsBOCBuilding Operator CertificationBTHBusiness, Transportation and Housing Agencywww.bth.ca.govBuRecBureau of Reclamationwww.usbr.govC&SCodes and StandardsCABCalifornia Architects Boardwww.cab.ca.govCAIACalifornia Agricultural Irrigation Associationwww.caia-irrigation.orgCAISO (or ISO) California Independent System Operatorwww.caiso.comCALBOCalifornia Building Officialswww.calbo.orgCalWORKS California Work Opportunities and Responsibility to Kidswww.ladpss.org/dpss/calworks/default.cfmCARB (or ARB) California Air Resources Boardwww.arb.ca.govCBOCommunity-based OrganizationCDFACalifornia Department of Food and Agriculturewww.cdfa.ca.govCDECalifornia Department of Educationwww.cde.ca.govACRONYMS PAGE 115


EnergyCommissionCEECEEACEESPCFLCO 2CIEECLTCCPUCCSACCSICSLBCSUCxDCDCSDDEERDGDOEDRDRADSMDSSDWREAPEDEDDEEEM&VEMSEPAEPRIESCOETETAACETCCCalifornia Energy Commissionwww.energy.ca.govConsortium for Energy Efficiencywww.cee1.orgCalifornia Energy Efficiency AllianceCalifornia Energy Efficiency Strategic Planwww.californiaenergyefficiency.comCompact Fluorescent Lamp or LightCarbon DioxideCalifornia Institute for Energy and Environment (CIEE)www.uc-ciee.orgCalifornia Lighting Technology Centerwww.cltc.ucdavis.eduCalifornia Public Utilities Commissionwww.cpuc.ca.gov/pucCalifornia State Association of CountiesCalifornia Solar Initiativewww.gosolarcalifornia.ca.gov/csi/index.htmlCalifornia State License Boardwww.cslb.ca.govCalifornia State UniversityCommissioningDirect CurrentDepartment of Community Services and Developmentwww.csd.ca.gov/default.aspxDatabase for Energy Efficient Resourceswww.energy.ca.gov/deerDistributed GenerationU.S. Department of Energywww.energy.govDemand ResponseDivision of Ratepayer Advocateswww.dra.ca.govDemand-Side ManagementDepartment of Social Serviceswww.dss.cahwnet.gov/cdssweb/default.htmCalifornia Department of Water Resourceswww.water.ca.govCalifornia Energy Action Planwww.energy.ca.gov/energy_action_plan/index.htmlCalifornia Public Utilities Energy DivisionEmployment Development Departmentwww.edd.ca.govEnergy EfficiencyEvaluation, Measurement and VerificationEnergy Management SystemU.S. Environmental Protection Agencywww.epa.govElectric Power Research Institutewww.epri.comEnergy Service CompanyEmerging Technology or Emerging TechnologiesEconomic and Technology Advancement Advisory Committeewww.etaac.org/jsp/genericdoc.jspEmerging Technologies Coordinating Councilwww.etcc-ca.comACRONYMS PAGE 116


ETPFSECGAINGHGGWhHARDIHDTVHERSHVACICLEIIDIEPRIOUISOITPkWkWhLBNLLCDLEDLEEDLGLGCLIEELIOBLOCME&OMthMWMWhNATENBINEMANISTNRCSNRELCalifornia Employment Training Panelwww.etp.ca.govFlorida Solar Energy Centerwww.fsec.ucf.edu/enGreater Avenues for Independencewww.ladpss.org/dpss/gain/default.cfmGreenhouse GasGigawatt HourHeating, Air Conditioning and Refrigeration Distributors Internationalwww.hardinet.orgHigh Definition TelevisionHome Energy Rating Systemwww.energy.ca.gov/HERSHeating, Ventilation and Air ConditioningInternational Council for Local Environmental Initiativeswww.iclei.orgIrrigation Districts or Integrated DesignIntegrated Energy Policy Reportwww.energy.ca.gov/2007_energypolicy/index.htmlInvestor-Owned UtilitySee CAISO or International Organization for StandardizationU.S. Department of Energy‘s Industrial Technologies Programwww1.eere.energy.gov/industrykilowattKilowatt HourLawrence Berkeley National Laboratorywww.lbl.govLiquid Crystal DisplayLight-emitting Diode (also used to describe lamps using LED technology)Leadership in Energy and Environmental Design (green building rating system)www.usgbc.org/leedLocal GovernmentLocal Government Commissionwww.lgc.orgLow Income Energy EfficiencyLow Income Oversight Boardwww.ligb.orgLeague of California Citieswww.cacities.org/index.jsp?zone=loccMarketing, Education and OutreachMillion ThermsMegawattMegawatt HourNorth American Technician Excellencewww.natex.orgNew Buildings Institutewww.newbuildings.orgNational Electrical Manufacturers Associationwww.nema.orgU.S. Department of Commerce‘s National Institute of Standards and Technologywww.nist.govNatural Resources Conservation Servicewww.nrcs.usda.govNational Renewable Energy Laboratorywww.nrel.govACRONYMS PAGE 117


NWEEAO&MPAPACEPDAPG&EPIERPOUPVQI/QMR&DRCxRD&DRECORFPRHSanDAGSCAGSCESCG (orSoCalGas)SDG&ESFLISGIPSMJUSMUDSWEEPTURNTRCUCUSDAUSGBCWCECWE&TWWDZNENorthwest Energy Efficiency Alliancewww.nwalliance.orgOperations and MaintenanceProgram AdministratorProperty-Assessed Clean EnergyPersonal Digital AssistantPacific Gas and Electric Companywww.pge.comPublic Interest Energy Researchwww.energy.ca.gov/pierPublicly Owned UtilityPhotovoltaicQuality Improvement/Quality ManagementResearch and DevelopmentRetrocommissioningResearch, Development and DemonstrationResidential Energy Conservation OrdinancesRequest for ProposalsRelative HumiditySan Diego Association of Governmentswww.sandag.cog.ca.usSouthern California Association of Governmentswww.scag.ca.govSouthern California Edisonwww.sce.comSouthern California Gas Companywww.socalgas.comSan Diego Gas & Electric Companywww.sdge.com/index.shtmSingle Family Low IncomeSelf-Generation Incentive Programwww.cpuc.ca.gov/PUC/energy/051005_sgip.htmSmall and Multijurisdictional UtilitySacramento Municipal Utility Districtwww.smud.orgSouthwest Energy Efficiency Projectwww.swenergy.orgThe Utility Reform Networkwww.turn.orgTotal Resource CostUniversity of CaliforniaU.S. Department of Agriculturewww.usda.govU.S. Green Building Councilwww.usgbc.orgWestern Cooling Efficiency Centerwcec.ucdavis.eduWorkforce Education and TrainingWind Wave DirectionZero Net EnergyACRONYMS PAGE 118


LIGHTING CHAPTER GLOSSARY AND BESTPRACTICESAB 811California Assembly Bill 811 (authored by Assembly member Lloyd Levine and signed byGovernor Arnold Schwarzenegger on July 21, 2008), which authorizes California citiesand counties to designate areas within which willing property owners could enter intocontractual assessments to finance the installation of energy efficiency improvementsand/or distributed renewable energy generation. For more information, visithttp://info.sen.ca.gov/pub/07-08/bill/asm/ab_0801-0850/ab_811_bill_20080721_chaptered.pdf.AB 1109California Assembly Bill 1109; see ―Huffman Bill‖Advanced Lighting TechnologiesComponents and systems with improved performance attributes that contribute towardefficiency enhancement and best practices. Examples (in 2010) include specialty CFLs,LEDs, cold cathode and high-efficiency incandescents (HEI).Air Resources Board (ARB)A part of the California Environmental Protection Agency that reports directly to theGovernor's Office in the Executive Branch of California State Government. The ARB'smission is to promote and protect public health, welfare and ecological resources throughthe effective and efficient reduction of air pollutants while recognizing and considering theeffects on the economy of the state.Best PracticeCoordinated technologies, systems and design approaches, which (through research andexperience) demonstrate the ability to consistently achieve above standard results whileavoiding negative environmental impacts. Best Practices change over time as improvedcomponents, technologies, systems and design approaches become available.California Institute for Energy and Environment (CIEE)A branch of the University of California Energy Institute, CIEE is a partnership of energyagencies, utilities, building industry, non-profits and research entities designed toadvance energy efficiency science and technology for the benefit of California, otherenergy consumers and the environment. For more information, visit CIEE's website athttp://uc-ciee.org.California Lighting Technology Center (CLTC)Established in 2003 at the University of California, Davis, the CLTC is an organizationdeveloped through a collaborative effort between the CEC, the California utilities, theU.S. Department of Energy (DOE) and the National Electrical Manufacturers Association(NEMA) to advance energy efficient lighting and daylighting technologies. For moreinformation, visit the CLTC website at http://cltc.ucdavis.edu.CPUC Web PortalThe CPUC‘s Energy Efficiency Web Portal, is a website currently under development bythe CPUC designed to serve as an organizing and information vehicle to achieve theCalifornia Energy Efficiency Strategic Plan vision.DaylightingBuilding assemblies (such as use of windows, skylights, light tubes and reflectivesurfaces) designed to introduce daylight into a building for the purpose of illumination,view and to reduce a building‘s reliance on electric lighting.Demand ResponseMechanism for managing end user electricity consumption in response to energy supplyconditions. A demand responsive system is one that can be controlled (either directly orremotely) to reduce electricity consumption during times of increased energy demandand/or constrained energy availability.Federal Energy Policy ActLIGHTING GLOSSARY AND BEST PRACTICES PAGE 119


A bill (Pub.L. 109-58) passed by the United States Congress and signed into law byPresident George W. Bush on August 8, 2005, which includes provisions for taxincentives for energy efficient equipment, requires the DOE to research demandresponse and other elements. For more information, visit the Federal Energy RegulatoryCommission website at http://www.ferc.gov/legal/fed-sta/ene-pol-act.asp.First CostImmediate purchase and installation cost. First costs do not include lifecycle or long-termoperating costs, which may result in long-term cost savings from increased efficiency,reduced maintenance and other factors.Green TeamsA formal or informal group of people in a company who are passionate aboutenvironmental issues. The groups brainstorm solutions and promote ways in which theircompany's practices can become more environmentally sustainable, often creatingsustainability plans and approaching management for funding to meet plans.Huffman BillCalifornia Assembly Bill 1109 (authored by Assembly member Jared Huffman and signedby Governor Arnold Schwarzenegger on October 12, 2007), which prohibits themanufacturing for sale or the sale of certain general purpose lights that containhazardous substances and requires the California Energy Commission to adopt energyefficiency standards for general purpose lights. For more information visithttp://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_1109&sess=CUR&house=B&author=huffman.Integrated SystemsLighting systems that include components, assemblies and controls designed to worktogether effectively.Lifecycle CostCost of a component, technology, or system over its entire lifespan, including not just firstcosts but also operating, maintenance and disposal costs.Local governmentsEntities including cities, counties, special districts and school districts.Market TransformationLong-lasting, sustainable changes in the structure or functioning of a market achieved byreducing barriers to the adoption of energy efficiency measures to the point wherecontinuation of the same publicly-funded intervention is no longer appropriate in thatspecific market. Market transformation includes promoting one set of efficienttechnologies, processes or building design approaches until they are adopted into codesand standards (or otherwise substantially adopted by the market), while also movingforward to bring the next generation of even more efficient technologies, processes ordesign solutions to the market. 90Pattern BookPrototype designs for energy efficient lighting suitable for typical building types.Information on lighting products and techniques enables the architect, interior designer,electrical contractor, building professional or do-it-yourself homeowner to design qualitylighting for individual space types.Property-Assessed Clean Energy (PACE)A form of financing that creates municipal finance districts to provide loans tohomeowners and businesses for energy-efficient retrofits and renewable energy systeminstallations. Loans are repaid through an annual surcharge on property taxassessments. Governor Schwarzenegger signed the nation‘s first law allowing PACEfinancing in 2008.Public Interest Energy Research (PIER)Program created by the CEC to conduct public interest energy research that seeks toimprove the quality of life for California citizens by providing environmentally sound, safe,reliable and affordable energy services and products. It includes the full range ofresearch, development and demonstration activities that will advance science orLIGHTING GLOSSARY AND BEST PRACTICES PAGE 120


technology not adequately provided by competitive and regulated markets. For moreinformation, visit the PIER website at http://www.pierminigrid.org/.Reach CodesCodes that direct contractors to construct buildings significantly more energy efficientthan required by conventional building codes.Simple PaybackAmount of time required to recover an initial investment.Smart LightingLighting that is dynamically responsive to end user needs based on daylighting,occupancy, scheduling and demand response requirements.Standard PracticeAs opposed to best practices, standard practices include techniques, policies,methodologies, procedures, technologies and systems that are typically employed bypractitioners and generally do not achieve optimal results (in terms of energy efficiency,demand-responsiveness, high quality, environmental sustainability, smart gridconnectedness and integration with renewable energy generation sources). For lighting,standard practices may include efficiency ―floors‖ required by building codes.SustainableDescribes a technique, policy, methodology, procedure, technology, or system designedor configured in such a way as to minimize (or entirely eliminate) negative impacts onnatural ecosystems and public health.Title 20The Appliance Efficiency Regulations (California Code of Regulations, Title 20, Sections1601 through 1608), which details current efficiency regulations for appliances sold oroffered for sale in California, except those sold wholesale in California for final retail saleoutside the state and those designed and sold exclusively for use in recreational vehiclesor other mobile equipment. The standards are updated periodically to allow considerationand possible incorporation of new energy efficiency technologies and methods.http://www.energy.ca.gov/2006publications/CEC-400-2006-002/CEC-400-2006-002-REV2.PDF.Title 24California's Energy Efficiency Standards for Residential and Nonresidential Buildings(California Code of Regulations, Title 24, Section 6), which contain the regulations thatgovern the construction of buildings in California. The standards are updated periodicallyto allow consideration and possible incorporation of new energy efficiency technologiesand methods. On April 23, 2008, the CEC adopted the most recent standard and theBuilding Standards Commission approved them for publication on September 11, 2008.These standards will go into effect for all building permit applications submitted on orafter January 1, 2010. http://www.energy.ca.gov/title24/.Research, Development and DemonstrationA process incorporating the discovery of new knowledge and understandings usingexperimental methodology. This includes translational activities of applying research tothe evolving of new systems and projects and activities wherein new products andapproaches are tested to develop applications based performance data.Zero Net EnergyFor buildings, use of no more energy over the course of a year than can be generatedonsite through renewable resources such as solar, wind, or geothermal power.LIGHTING GLOSSARY AND BEST PRACTICES PAGE 121


LIGHTING BEST PRACTICESSpace Types Best Practice Retrofits Standard Practice RetrofitsCommercial OfficeEducational ClassroomsResidential DownlightsCommercial DownlightsExterior Lighting(e.g. Parking lot ,pathway, notincluding parking garages)Interior HID Applications(e.g. retail and industrial)Task/Ambient lighting withoccupancy and daylight controls with73 percent energy savings or 0.5Watts/sq ftIntegrated Classroom LightingSystem with occupancy controls with65 percent energy savings or 0.7Watts/sq ftHigh quality LEDs or SSL fixturesystem with 79 percent energysavingsHigh quality LEDs or SSL fixturesystems with 78 percent energysavingsSmart Bi-level lighting systems withoccupancy and daylight controls with40 percent energy savingsElectronic HID ballasts with 25percent system energy savings or0.75 Watts/sq ftRetrofit of ambient lighting systemwith 37 percent energy savings or1.1 Watts/sq ftRecessed troffer fixtures withoccupancy controls with 50 percentenergy savings or 1.0 Watts/sq ftCompact fluorescent (CFL) fixturesystem with 60 percent energysavingsCompact fluorescent (CFL) fixturesystem with 54 percent energysavingsStandard lighting with photocellcontrols with 0 percent energysavingsMagnetic HID ballasts with 0 percentenergy savings or 1.0 Watts/sq ftPLEASE NOTE: these best practice examples show the total technical savings potential and areprimarily intended to illustrate the results from the using best practices versus standard practicesover 10 years. Calculations are based on accepted estimates for total building stock, assumedhours of operations, demonstrations and verified savings results from both standard and bestpractice approaches. Detailed accounting including source and assumption data is in the 2010Lighting Technology Overview.LIGHTING GLOSSARY AND BEST PRACTICES PAGE 122


ENDNOTES1 California Public Utilities Commission Decision 07-10-032. (D.07-10-023) Available at:http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/74107.pdf2 Extensive documentation of the materials developed though the strategic planning process is available at:www.californiaenergyefficiency.com3 The last state effort of this nature was the California Conservation Collaborative, which in 1990 restored emphasisand funding to utility energy efficiency programs and established new design principles for programs and utilityregulation, in response to a drop-off in utility energy efficiency efforts in the late 1980s.4 ―Energy Action Plan II, Implementation Roadmap for Energy Policies‖, California Energy Commission and CaliforniaPublic Utilities Commission, September 21, 2005. Available at:http://docs.cpuc.ca.gov/word_pdf/REPORT/51604.pdf5 ―Energy Action Plan I‖, California Energy Commission, California Public Utilities Commission and Consumer Powerand Conservation Financing Authority. May 8, 2003. Available at:http://docs.cpuc.ca.gov/word_pdf/REPORT/28715.pdf6 California Energy Commission, 2007 Integrated Energy Policy Report (2007 IEPR), adopted December 5, 2007.CEC-100-2007-008-CMF. Available at: http://www.energy.ca.gov/2007_energypolicy/documents/index.html7 California Air Resources Board ―Climate Change Draft Scoping Plan: A Framework for Change‖ June 2008Discussion Draft. (CARB Scoping Plan) p. 7. Available at:http://www.arb.ca.gov/cc/scopingplan/document/draftscopingplan.pdf8 2007 IEPR.9 McKinsey & Company. ―Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost? U.S. GreenhouseGas Abatement Mapping Initiative‖ Executive Report, December 2007. Available at:http://www.mckinsey.com/clientservice/ccsi/pdf/US_ghg_final_report.pdf10Assembly Bill No. 32 (Pavley, 2006) California Health and Safety Code, §§ 38500 et seq. Available at:http://www.climatechange.ca.gov/publications/legislation/ab_32_bill_20060927_chaptered.pdf11 CARB Scoping Plan p. 13.12 Ibid. pp 21-22. The Draft Plan Appendices also consider a more stringent target for energy savings of 40,000 GWh.13 Ibid. p.22. Assembly Bill 1493 (Pavley, 2002) directed ARB to adopt vehicle standards that lower greenhouse gasemissions to the maximum extent technologically feasible, beginning with the 2009 model year. ARB plans to adopta second, more stringent, phase of the Pavley regulations. Over the 2020 timeframe these measures are expectedto yield over 30 million metric tons of GHG reductions. ARB adopted regulations in 2004 and applied to the U.S.Environmental Protection Agency (U.S. EPA) for a waiver under the federal Clean Air Act to implement theregulation. While initially denied, it is likely that ARB will ultimately be permitted to implement the Pavleyregulations. If not, they plan to pursue other avenues to realize the vast potential for GHG reductions in thetransportation sector.14 http://www.green.ca.gov/GreenActionTeam/default.htm15 California Public Utilities Commission Decision 08-07-047. (D.08-07-047) Available at:http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/85995.pdf16 Energy Independence and Security Act of 2007. (EISA 2007) Public Law 110–140. Dec. 19, 2007. Available at:http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ140.110.pdfENDNOTES PAGE 123


17 D.07-10-032, p.33.18 Ibid. , p. 3319 California Public Utilities Commission Decision 98-04-063, Appendix A.20 D.07-10-032, p.150.21 As an example, the Northeast Energy Efficiency Partnership (NEEP) sets market transformation goals for itsprograms, and then measures progress towards the goals by determining the extent to which various barriers havebeen overcome in a given market. Such barrier criteria include: consumer awareness, product/service availability,pricing, purchasing behavior, customer satisfaction, and future customer actions. Measures and programs thathave achieved their goals are phased out of utility energy efficiency portfolios to make room for new measures.22 Transcripts of the three stakeholder workshops—as well as the written comments submitted—are available on thestrategic planning website: www.californiaenergyefficiency.com.232007 IEPR24California is served by well over 60 electricity and natural gas distribution companies. (Energy Commission athttp://www.energy.ca.gov/electricity/utilities.html#300; and U.S. Census Bureau, 1997 Economic CensusDecember 29, 1999, which counts over 200 utilities) Some smaller utilities may not offer residential customersopportunities to participate in energy efficiency programs. However, a large majority of California residents areserved by utilities that do offer energy efficiency programs. (See also endnote 3 below.)25Thirty percent (30%) is the proportion of IOU-served residential households qualifying for Low Income EnergyEfficiency (LIEE) programs. IOUs serve about 10.5 million residential customers (CPUC athttp://www.cpuc.ca.gov/PUC/energy/), or approximately 83% of California households. The proportion of LIEEqualifyinghouseholds served by publicly-owned utilities is assumed to be similar.26 Title 20, Cal. Code Regs., Sections 1601 – 1608, http://www.energy.ca.gov/appliances/; Title 24, Cal.Code Regs.Part 6, http://www.energy.ca.gov/title24/.27 Assembly Bill No. 1109 (Huffman, 2007) Public Resources Code §§ 25402 et seq. Available at:http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_1101-1150/ab_1109_bill_20071012_chaptered.pdf28 2007 IEPR, pp. 88.29 Several green building standards take embodied energy into account. See, for instance, US Green Building CouncilLeadership in Environmental and Environmental Design (LEED) (http://www.usgbc.org) or UK Code for SustainableHomes (http://www.planningportal.gov.uk/england/professionals/en/1115314116927.html)30 In establishing the New Solar Homes Partnership (NSHP), the Energy Commission requires that new residentialbuildings granted an incentive under the NSHP exceed California‘s Title 24 Building Energy Efficiency Standards.This helps the combined energy efficiency and solar project to be as affordable as possible over the life of thehome. To qualify for ―Tier II‖ incentives, the home must exceed Title 24 standards by 35%. For more informationregarding the Energy Commission‘s New Solar Homes Partnership and qualifying energy efficiency standards, goto: http://www.gosolarcalifornia.org31 BSC Green Building Standards. Available at:http://www.documents.dgs.ca.gov/bsc/prpsd_stds/2007/combined_approved_green_code_pt11.pdf32 San Francisco 2008 Green Building Ordinance, Available at:http://www.sfenvironment.org/downloads/library/sf_green_building_ordinance_2008.pdf33 Los Angeles 2008 Green Building Ordinance, Available at:http://cityplanning.lacity.org/Code_Studies/GreenLA/greenbuildingordinance.pdfENDNOTES PAGE 124


34 At the end of 2007 (prior to the mortgage crisis), only one-in-three of the state‘s households could afford aconventional entry level home, an improvement from one-in-four a year earlier, but still challenging for prospectivehome buyers. See: ―Housing Affordability Improves as Prices and Rates Decline‖, Robert A. Kleinhenz, CaliforniaAssociation of Realtors, February 2008.35 United States Department of Energy. ―Residential Energy Consumption Survey.‖ 2001. Available at:http://www.eia.doe.gov/emeu/recs/recs2001/enduse2001/enduse2001.html36Federal, state and local governmental buildings and facilities are categorized as ―commercial‖ and implicitlyincluded in the strategies of this Chapter and periodically differentiated as warranted; additionally, localgovernmental buildings are discussed extensively in the Local Government Chapter of this Strategic Plan.37 For more information on the 2030 Challenge go to: http://www.zeroenergycbi.org/38 For more information on this Initiative go to: http://www.eere.energy.gov/news/daily.cfm/hp_news_id=12939 For more information on California‘s Green Buildings Initiative, go to: http://www.dgs.ca.gov/GB%20Program.htm40 For more information on California‘s Grid Neutral Schools Program, go to: http://www.greentechnology.org/green_technology_magazine/images/grid_neutral.pdf41 California Energy Commission, Options for Energy Efficiency in Existing Buildings. December 2005. CEC-400-2005-039-CMF. Available at: http://www.energy.ca.gov/2005publications/CEC-400-2005-039/CEC-400-2005-039-CMF.PDF42 Assembly Bill 1103 (Saldana, 2007) Public Resourc eCode, §§ 25402 et seq. Available at:http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_1101-1150/ab_1103_bill_20071012_chaptered.pdf43California Energy Commission, http://www.energy.ca.gov/electricity/consumption_by_sector.html442007 IEPR.45CARB Scoping Plan, p.7.462007 IEPR.47 For more information on the Superior Energy Performance Partnership, go to:http://www.superiorenergyperformance.net/48 For more information on the ANSI-accredited Plant Energy Efficiency Certification Program initiated through SEPPgo to: http://www.superiorenergyperformance.net/pdfs/Plant-Certification-StrategicPlan-SEP-May-2008.pdf49 For more information on these programs, go to: http://www1.eere.energy.gov/industry/saveenergynow/ andhttp://www.labs21century.gov/50 2007 IEPR, p. 13.51 For more information on CDFA‘s Vision, go to: http://www.cdfa.ca.gov/agvision/.52This Plan examines residential and small commercial HVAC, and therefore implicitly assumes unitary equipment(packaged and split) that is 20 tons and below, rather than large, built-up HVAC. Large systems are an importantenergy efficiency and peak management issue but, pursuant to the Commission‘s big, bold Programmatic Initiativein D.07-10-032, are not directly examined in this Chapter as they have a very different marketplace dynamic thanunitary systems. Many of the factors that influence efficiency of large systems are examined in the CommercialChapter.ENDNOTES PAGE 125


53Chris Neme, John Proctor, and Steve Nadel, National Energy Savings Potential from Addressing HVAC InstallationProblems; (Prepared for the U.S. EPA, February 1999.) Available at: http://www.aceee.org/pubs/a992.htm54 ―Strategic Plan to Reduce the Energy Impact of Air Conditioners‖ AB 2021 Report‖ June 2008. CEC-400-2008-010.Available at: http://www.energy.ca.gov/2008publications/CEC-400-2008-010/CEC-400-2008-010.PDF55Section 306 of EISA 2007 allows, for the first time, for the U.S. Secretary of Energy to set regional standards forcertain HVAC equipment.56Appliances are, in fact, primarily regulated at the federal level; and for any product that is regulated at the federallevel states are preempted from regulating. Buildings are primarily regulated at the state level; notable exceptionsare manufactured housing (which is federally regulated) and hospitals.572007 IEPR.58Chris Neme, John Proctor, and Steve Nadel, National Energy Savings Potential from Addressing HVAC InstallationProblems (Prepared for the U.S. EPA, February 1999). Available at: http://www.aceee.org/pubs/a992.htm59See for example Quantec, Statewide Codes and Standards Market Adoption and Noncompliance Rates. Preparedfor Southern California Edison May 10, 2007.60 EISA 2007 requires state to initiate smart grid proceedings by the end of 2008. All of the IOUs have already filed forrecovery of infrastructure investments for smart grid.61 ―Plugging in the Consume: Innovating Utility Business Models for the Future‖ IBM Institute for Business Value,2007. Available at: http://www-03.ibm.com/industries/utilities/doc/content/landingdtw/3165578119.html62 California Energy Commission recently held on this emerging CEC Smart Grid research initiative, ―Defining thePathway to the California Smart Grid of 2020‖. Agenda available at:http://www.energy.ca.gov/research/notices/2008-08-05_RFP_smartgrid/2008-08-05_AGENDA.PDF63 The topical convener reports are summaries based on the input received at publicly-held workshops attended bystakeholders, experts, IOU staff and others to provide information and discussion in the development of theCalifornia Energy Efficiency Strategic Plan. The CPUC convened the workshops and enlisted leading subjectmatter experts to serve as conveners for each sector and crosscutting issue in this process. The HVAC ConvenerReport itself can be found on the California Energy Efficiency Strategic Plan site,http://www.californiaenergyefficiency.com64 D.07-10-032, p. 59.65 D.07-10-032, pp. 64-65.66 Johnson, K., N. Bourassa, and M. Seaman. 2008. "New California PIER R&D Product Introduction Process"Proceedings of the 2008 ACEEE Summer Study on Energy Efficiency in Buildings. 9:162-171. Washington D.C.:American Council for an Energy-Efficient Economy.67 ―Local governments‖ primarily refers to cities and counties, which have land use authority. However, there are alsoimportant roles for regional government, metropolitan planning organizations, school and special districts and otherlocal and regional government entities.68 California Public Utilities Commission Decision 99-08-021, Ordering Para. 11. See also D.01-01-060 directing theutilities to increase partnerships with local governments to achieve energy efficiency at the local level.69 California Environmental Quality ActENDNOTES PAGE 126


70 Quantec, Statewide Codes and Standards Market Adoption and Noncompliance Rates. Prepared for SouthernCalifornia Edison, May 10, 2007. Available at:http://www.californiaenergyefficiency.com/docs/hvac/references/Codes_and_Standards_Final_Report.pdf71 For more information on the Cambridge project, go to: http://www.cambridgeenergyalliance.org/72 Assembly Bill 811 (Levine, 2008) Streets and Highway Code, §§ 5898 et seq. Available at:http://info.sen.ca.gov/pub/07-08/bill/asm/ab_0801-0850/ab_811_bill_20080721_chaptered.pdf73 Senate Bill 375 (Steinberg, 2008) Available at: http://info.sen.ca.gov/pub/07-08/bill/sen/sb_0351-0400/sb_375_bill_20080902_enrolled.pdf74 California Energy Commission. California Energy Demand 2003-2013 Forecast: Staff Report. Preparedin Support of the Electricity and Natural Gas Report under the Integrated Energy Policy ReportProceeding (02-IEP-01). August 2003.75 California Lighting Technology Center (CLTC). 2010 Lighting Technology Overview. Prepared for theCPUC, 2010.76 KEMA Inc. Final Evaluation Report: Upstream Lighting Program (Volume 1). Prepared for the CPUCEnergy Division. February 8, 2010.77 California Lighting Technology Center. Preliminary results from ongoing CLTC study on Super CFLs.Prepared for the CPUC, 2009.78 California Lighting Technology Center. 2010 Lighting Technology Overview.79 ibid.80 ibid, page 3.81 Gibbs, M. and J. Townsend. The Role of Rebates in Market Transformation: Friend or Foe? Publishedin the Proceedings of the ACEEE 2000 Summer Study on Energy Efficiency in Buildings, 6.121-6.132.Washington, D.C., 2000.82 CLTC. 2010 Lighting Technology Overview. page 8.83 Pierce, S. California Outdoor Lighting Baseline Assessment. Prepared for the California EnergyCommission, PIER Program. P500-03-082-A-18. 2003.84 Gauna, et al. ―Developing Lighting Technologies: Integrated Office Lighting.‖ PIER Final Report,California Energy Commission. May 2008.85 CLTC. 2010 Lighting Technology Overview. page 4.86 California Public Utilities Commission, California Long-Term Energy Efficiency Strategic Plan, Section2-Page 22; See also, Decision 09-09-047 (D.09-09-047) September 24, 2009, pgs. 137-138 (Available at:http://docs.cpuc.ca.gov/proceedings/A0807021.htm#decisions)87 Opinion Dynamics Corporation. Ethnographic Research Findings. Presented to the CPUC on August25, 2009. Available at http://www.cpuc.ca.gov/NR/rdonlyres/3D5AC333-D531-4734-AF9D-1A28AF7E5008/0/FinalEthnographicResearchPresentation.PDF88 Rosenfeld, Arthur H. (Commissioner, California Energy Commission). "From the Lab to the Market toStandards The Role of California Energy Policy." Digital presentation at California Lighting TechnologyCenter. CEC-999-2006-023. November 2006.89 KEMA Inc. Final Evaluation Report: Upstream Lighting Program (Volume 1). Prepared for the CPUCEnergy Division. February 8, 2010.ENDNOTES PAGE 127


90 California Public Utilities Commission, D.09-09-047.ENDNOTES PAGE 128

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