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2013 -2014 Energy Efficiency Programs <br />Local Government Partnership Program <br />Program Implementation Plan <br />Implementation <br />For each of the five Strategic Plan Support elements described, implementation will vary across <br />the LGPs. For detailed information about implementation, please see the Individual LGP PIPS <br />and Supplemental Filing —Local Government Partnership Strategic Plan Proposals in Compliance <br />with D.09 -09 -047 (Advice Letter 2445 -E -A). In general, each Partnership contract will identify <br />which strategic plan program elements will be included in the partnership program and the <br />associated budget. The utility and partner responsibilities will be defined for each program <br />element included in the partnership. <br />5 - Program Element Rationale and Expected Outcome — Element B - Strategic Plan Support <br />a) Quantitative Baseline and Market Transformation Information <br />Market Transformation (MT) metrics proposed in Tables 3 and 4 are preliminary. The <br />proposed metrics are meant to initiate a collaborative effort to elaborate meaningful metrics <br />that will provide overall indicators of how markets as a whole are evolving. MT metrics <br />should neither be used for short-term analyses nor for specific program analyses; rather, <br />should focus on broad market segments. <br />Market transformation is embraced as an ideal end state resulting from the collective efforts <br />of the energy efficiency field, but differing understandings of both the MT process and the <br />successful end state have not yet converged. The CPUC defines the end state of MT as <br />"Long- lasting sustainable changes in the structure or functioning of a market achieved by <br />reducing barriers to the adoption of energy efficiency measures to the point where further <br />publicly- funded intervention is no longer appropriate in that specific market." 16 The Strategic <br />Plan recognizes that process of transformation is harder to define than its end state, and that <br />new programs are needed to support the continuous transformation of markets around <br />successive generations of new technologies 17. <br />Market transformation programs differ from resource acquisition programs on 1) objectives, <br />2) geographical and 3) temporal dimensions, 4) baselines, 5) performance metrics, 6) <br />program delivery mechanisms, 7) target populations, 8) attribution of causal relationships, <br />and 9) market structures 18. Markets are social institutions 19, and transformation requires the <br />coordinated effort of many stakeholders at the national level, directed to not immediate <br />energy savings but rather to intenriediary steps such as changing behavior, attitudes, and <br />market supply chains 20 as well as changes to codes and standards. Resource acquisition <br />programs rely upon the use of financial incentives, but concerns have been raised that these <br />incentives distort true market price signals and may directly counter market transformation <br />re California Public Utilities Commission Decision, D.98 -04 -063, Appendix A. <br />California Public Utilities Commission (2008) California Long Term Energy Efficiency Strategic Plan, p. 5. Available at <br />http:// www. califomiaenergyefficiency .com/does/EEStrategicP [an.pdf <br />"Peloza, J., and York, D. (1999). "Market Transformation: A Guide for Program Developers." Energy Center of Wisconsin. <br />Available at: http: / /www.ecw.org /ecwresults /189 -l.pdf <br />" Blumstem, C., Goldstone, S., & Lutzenhiser, L. (2001) "From technology transfer to market transformation ". Proceedings of <br />the European Council for an Energy Efficient Economy Summer Study. Available at <br />http: / /www.eccee.org /confaence proceedings /eeeee/2001/13ancl_2 /p2_7 /Paper/ <br />20 Sebold, F. D., Fields, A., Skumatz, L., Feldman, S., Goldberg, M., Keating, K., Peters, J. (2001) A Frameworkfor Planning <br />and Assessing Publicly Funded Energy Efficiency. p. 6 =147vw cahnac.org <br />