HomeMy WebLinkAboutSOUTHERN CALIFORNIA GAS COMPANY - 2013A- 2013 -189
INSURANCE ON raz AGREEMENT TO DELIVER THE 2013 -201.4
oWORK MAY PROCEED SANTA ANA
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CLERK OFCOUNCII --- E"NE%'y EFFICIENCY PARTNERSHIP PROGRAM
DATE: 2y f� J
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CITY OF SANTA ANA
Mel
SOUTHERN CALIFORNIA GAS COMPANY
DATED: JANUARY I, 2013
This program is funded by California utility ratepayers and administered by the
Utility under the auspices of the California Public Utilities Commission.
THIS AGREEMENT TO DELIVER THE 2013 -2014 SANTA ANA ENERGY
EFFICIENCY PARTNERSHIP PROGRAM (the "Agreement ") between the City of Santa Ana,
(the "City "), and Southern California Gas Company ( "Utility "), shall be effective as of January
1, 2013 ( "Effective Date "). SCG and the City may be referred to herein individually as a
"Party" and collectively as "Parties ". The SANTA ANA ENERGY EFFICIENCY
PARTNERSHIP may be referred to herein as the "Santa Ana Partnership" or the "Program."
WHEREAS On November 8, 2012, the California Public Utilities Commission (the
"Commission "), issued its Decision Approving 2013 -2014 Energy Efficiency Programs and
Budgets (D. 12 -11 -015, the "Decision "). The Decision approves a portfolio of energy efficiency
programs and budgets to be implemented in 2013 -2014, including the expansion of SCG Local
Government Partnership Programs, which includes the Santa Ana Partnership;
WHEREAS, the City and the Utility have expressed a commitment to participate jointly
in the Program, allowing the city to achieve immediate and long -term energy savings in its own
facilities and to demonstrate energy efficiency leadership in its communities while helping
residents and businesses achieve sustainable reductions in energy use within SCG territory; and
WHEREAS, the Parties desire to enter into an agreement that supersedes any and all
previous agreements, and sets forth the terns and conditions under which the Programs shall be
implemented with respect to the Parties.
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties agree as follows:
1. DEFINITIONS:
All terms used in the singular will be deemed to include the plural, and vice versa. The
words "herein," "hereto," and "hereunder" and words of similar import refer to this Agreement
as a whole, including all exhibits or other attachments to this Agreement, as the same may from
time to time be amended or supplemented, and not to any particular subdivision contained in this
Agreement, except as the context clearly requires otherwise. "Includes" or "including" when
used herein is not intended to be exclusive, or to limit the generality of the preceding words, and
means "including without limitation." The word "or" is not exclusive.
1.1. Agreement: This document and all exhibits attached hereto, and as amended from time
to time.
1.2. Authorized Partnership Budget: The Commission- approved maximum budget for
funding the Partnership and performance by the Program Participants' of Authorized
Work, the total amount which shall be apportioned among the Program Participants,
including the City, by SCG in its sole and absolute discretion (see "Partner Budget ").
1.3. Authorized Work: The work authorized by the Commission for the Program as set forth
in this Agreement and as more fully described in the Program Implementation Plan
attached hereto as Exhibit A, and as agreed to be performed by the Parties.
2013 -14 Santa Ana Partnership Agreement 1
1.4. Business Day: The period from one midnight to the following midnight, excluding
Saturdays, Sundays, and holidays.
1.5. Calendar Day: The period from one midnight to the following midnight, including
Saturdays, Sundays, and holidays. Unless otherwise specified, all days in this
Agreement are Calendar Days.
1.6. Contractor: An entity contracting directly or indirectly with a Party, or any subcontractor
thereof subcontracting with such Contractor, to furnish services or materials as part of or
directly related to such Party's Authorized Work obligations.
1.7. Customers or Eligible Customers: Customers eligible for 2013 -2014 Program services,
which are SCG customers located within SCG service territory in the City, and may
include the county itself.
1.8. EM &V: Evaluation, Measurement and Verification of the Program pursuant to
Commission requirements.
1.9. Energy Efficiency Measure (or Measure): As used in the Commission's Energy
Efficiency Policy Manual, Version 4, July 2008, as may be supplemented or updated
from time to time.
1.10. Gas Surcharge: The funds collected from gas utility ratepayers pursuant to
Section 890 et al. of the California Public Utilities Code for public purposes programs,
including energy efficiency programs approved by the Commission.
1.11. The City: The participating city in this Program is Santa Ana.
1.12. Incentive: As used in the Commission's Energy Efficiency Policy Manual,
Version 4, August 2008, as may be supplemented or updated from time to time.
1.13. Energy Champion: The City's representative who is a point of contact for the
Program and who can represent the City on a daily basis for all Program activities and
energy efficiency projects pertaining to the City.
1.14. Program Management Consultant: A third -party contractor hired by SCG on
behalf of the Partnership to facilitate and coordinate the delivery of the Program. The
activities of the Program Management Consultant include, but not limited to,
coordinating and facilitating Partnership meetings and events, program reporting,
assistance in marketing and outreach, assistance in tracking Program progress,
coordinating Program information, etc.
1.15. Partner's Budget: That portion of the Authorized Budget, which excludes the
Utility's costs, and represents the maximum budget and maximum allocation by period
for funding the performance of the Program by the City or Program Participants and as
set forth in Exhibit B, subject to amendment by the Utility consistent with the terms of
this Agreement.
2013 -14 Santa Ana Partnership Agreement 2
1.16. Program Expenditures: Actual (i.e., no mark -up for profit, administrative or other
indirect costs), reasonable expenditures of the City or Program Participants that are pre -
approved, directly identifiable to, and required for the Authorized Work.
1.17. PIP or Program Implementation Plan: The implementation plan specific to this
Partnership, together with SCG Local Government Master PIPs, which include the
anticipated scope of the Programs in SCG service territory, as approved by the
Commission and attached hereto as Exhibit A.
1.18. Planning Document: A Program document that describes Program
implementation and /or management processes, procedures and strategies, as may be
supplemented or updated from time to time.
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The 2013 -2014 Program is funded by California utility ratepayers and is administered by the
Utility render the auspices of the Commission. The purpose of this Agreement is to set forth the
terms and conditions under which the Parties will jointly implement the 2013 -2014 Program.
The work authorized pursuant to this Agreement is not to be performed for profit.
This Agreement is not intended to and does not form any "partnership" within the meaning of the
California Uniform Partnership Act of 1994 or otherwise.
3. PROGRAM DESCRIPTION
3.1. Overview. The 2013 -2014 SCG Local Government Partnerships are designed to provide
integrated technical and financial assistance to help local governments effectively lead
their communities to increase energy efficiency, reduce greenhouse gas emissions,
protect air quality and ensure that their communities are more livable and sustainable.
The Program provides performance -based opportunities for the City to demonstrate
energy efficiency leadership in its connnunities through energy saving actions, including
retrofitting its municipal facilities, as well as providing opportunities for constituents to
take action in their homes and businesses. By implementing measures in its own
facilities, the City will lead by example as the City and the Utility work together to
increase community awareness of energy efficiency and position the City as leaders in
energy management practices. The Program will provide marketing, outreach,
education, training and community sweeps to comiect the communities with
opportunities to save energy, money and help the environment. The Program
Participants will leverage the strengths of each other to efficiently deliver energy and
demand savings. This partnership will allow the City to deliver sustainable energy
savings, promote energy efficient lifestyles, and develop an enduring leadership role for
the City through its relationships with other Program Participants, its constituents, and
the Utility.
2013 -14 Santa Ana Partnership Agreement 3
4. AUTHORIZED WORK
4.1. Scope. The work authorized by the Commission is set forth broadly in the PIP (Exhibit
A) and shall be performed pursuant to the terns of this Agreement. The Parties shall
collaborate and mutually agree upon specific Program implementation consistent with
the PIP, and the Parties shall document such details in a "Planning Document" which is
intended to evolve throughout the term of the Program.
4.2. Objectives. The Program is designed to meet the specific energy savings targets set
forth in Exhibit B of this Agreement, while implementing the Program strategies and
meeting the general objectives and milestones set forth in the PIPS.
5. LIMITATION ON SERVICE TERRITORY
The Parties agree that Authorized Work shall only be performed in the SCG service territory
and must directly benefit SCG customers, with natural gas savings applicable solely to
SCG's utility system. No Authorized Work shall be performed for any customers that
receive natural gas from a municipal utility corporation, or other gas service provider, that do
not directly receive gas service from SCG. Nothing in this Section 5 is intended to preclude
Program coordination with other municipal utility.
6. OBLIGATIONS OF THE PARTIES
6.1. Obligations of the Utility and the City
6.1.1, Each Party will be responsible for the overall progress of its Authorized Work, to
ensure that the Program remains on target (including but not limited to achieving the
Program's specific energy savings and goals as set forth in Exhibit B).
6.12. The Parties shall jointly coordinate and prepare all Program - related documents,
including all required reporting pursuant to Section 9, and any such other reporting
as may be reasonably requested by the Utility.
6.13. To the extent practicable and with coordination by the Utility, the Parties shall use
the Programs as a portal for all existing or selected energy program offerings of the
Utility, including, but not limited to, programs targeting low - income customers,
self - generation, solar, emerging technologies, and other programs as described in
the PIP, and in support of the Strategic Plan adopted by the Commission and the
Utility. This coordinated effort supports the goal to enhance consistency in rebates
and other Program details, minimize duplicative administrative costs, and enhance
the possibility that programs can be marketed together to avoid duplicative
marketing expenditures.
61.4. Consistent with those contained in the PIP, the Utility and the City may work
together to identify, develop, and accomplish additional mutually agreeable goals in
accordance with Section 7.
2013 -14 Santa Ana Partnership Agreement 4
6.2. Obligations of the City.
6.2.1. The City will appoint an `Energy Champion" who will be the primary contact
between the City and the SCG Energy Efficiency Representative (defined in Section
6.3.1), and who will be authorized to act on behalf of the City in carrying out the
City's obligations wider this Agreement. Such appointment shall be communicated
in writing to SCG within ten Business Days following execution of this Agreement.
The City shall communicate regularly with the SCG Energy Efficiency
Representative in accordance with Section 7.3 and 7.4 hereof, and shall advise SCG
immediately of any problems or delays associated with its Authorized Work
obligations.
6.2.2. The City will be actively involved in all aspects of the Program. The City will
use its best efforts to (a) dedicate human resources necessary to implement the
Program successfully, (b) provide support for the Program's marketing and outreach
activities, and (c) work to enhance communications with SCG to address consumer
needs.
6.2.3. The City shall obtain the approval of SCG prior to conducting any Program public
outreach activities (exhibits, displays, public presentations, canvassing, etc.) and any
marketing materials used in connection with such outreach activity shall comply
with the requirements of Section 6.2..
6.2.4. The City acknowledges and agrees that the Program has other Program
Participants, and that no one Program Participant is entitled to the entire Authorized
Partnership Budget, and that the City shall work with SCG and each other Program
Participants to achieve the goals and accomplish the Authorized Work of the
Program.
6.2.5. The City shall perform its Authorized Work obligations within the Partner's
Budget and in conformance with the schedule and goals associated with such
Authorized Work as set forth in this Agreement, and shall furnish the required labor,
equipment and material with the degree of skill,, care and professionalism that is
required by current professional standards.
6.2.6. The City shall obtain the approval of the Utility prior to distribution, publication,
circulation, or dissemination of such materials in any way to the public. In addition,
all advertising, marketing or otherwise printed or reproduced material used to
implement, refer to or is in anyway related to the Program must contain the
respective name and logo of the Utility and, at a minimum, the following language:
"This Program is funded by California utility ratepayers and administered by
Southern California Gas Company under the auspices of the California Public
Utilities Commission."
6.2.7. Upon reasonable request by the Utility, the City shall submit to the Utility all
contracts, agreements or other requested documents with the City's Contractors
(including subcontractors) performing work for the Program.
2013 -14 Santa Ana Partnership Agreement 5
6.3. Obligations of the Utility.
6.3.1. The Utility will appoint a Partnership representative ( "SCG Energy Efficiency
Representative ") who will be the primary contact for the City and Program
Participants, and who will be authorized to act on behalf of the Utility in carrying
out the Utility's obligations under thus Agreement. Such appointment shall be
communicated in writing to the City within ten Business Days following execution
of this Agreement.
6.3.2. The Utility will oversee the activities and implementation of the Program, in
accordance with this Agreement.
6.3.3. The Utility will be actively involved in all aspects of the Program. The Utility
will use its best efforts to add value to the Program by (a) dedicating human
resources necessary to assist the City in implementing the Program successfully and
providing and maintaining a Utility presence in the City, (b) providing support for
the Program's marketing and outreach activities, and (c) working closely with the
City to enhance communications with Program Participants, address customer needs
and provide the Utility information and services.
6.3.4. The Utility shall provide, at no cost to the City, informational and educational
materials on the Utility's statewide and local energy efficiency core programs.
6.3.5. The Utility shall work with the City as requested to help identify cost - effective
energy efficient projects in each of the Program Participant's qualifying municipal
facilities within the Utility's service territory.
6.3.6. SCG shall administer the Gas Surcharge funds authorized by the Commission for
the Program in accordance with this Agreement, and SCG may hire a Program
Management Consultant on behalf of the Partnership to help facilitate and
coordinate the delivery of the Program.
6.3.7. The Utility shall be responsible for coordinating and ensuring compliance with all
Utility reporting and other Utility filing requirements by the PUC.
6.3.8. The Utility shall be responsible for tracking performance of the City in
accordance with Section 10.1.2, and for verifying all energy savings claims, and for
monitoring and verifying achievement of the general objectives, goals, and
milestones as described in Exhibit A.
6.4. EM &V. Once the Commission has approved and issued an evaluation, measurement
and verification ( "EM &V ") plan for the 2013 -2014 Program, such EM &V plan shall be
attached to this Agreement as Exhibit C and shall be incorporated herein by this
reference. Any subsequent changes or modifications to such EM &V plan by the
Commission shall be automatically incorporated into Exhibit C. The City shall provide
and comply with all Commission requests regarding activities related to EM &V. The
City and its Contractors shall cooperate fully with the Utility's Representative(s) and
will provide all requested information, if any, to assure the timely completion of all
EM &V tasks requiring the City's involvement or cooperation.
2013 -14 Santa Ana Partnership Agreement 6
7. ADMINISTRATION OF PROGRAM
7.1. Decision - making and Approval.
7.1.1. Except as specifically provided in this Agreement, the following actions and
tasks require consent of all Parties:
7.1.1.1.Any material modification to the Authorized Work in connection with the
Program.
7.1.1.2.Any action that materially impacts the agreed -upon schedule for
implementing the Program.
7.1.1.3. Selection of any Contractor not previously approved by the Utility, if
applicable.
7.2. Document Retention. Unless otherwise specified in this Agreement, the Parties shall
document all material Program decisions, including, without limitation, all actions
specified in Section 7.1.1 above, in meeting minutes or if taken outside a meeting,
through written connnunication, which shall be maintained in hard copy form on file by
the Parties for a period of no less than five (5 ) years after the expiration or termination
of this Agreement.
7.3. Regular Meetings. During the term of this Agreement, the City representatives of the
Partnership identified in writing pursuant to Section 6.2.1 and 6.3.1, respectively, shall
meet monthly at a location reasonably agreed upon by the Parties. In addition to any
other agenda items requested by either Party, the agenda shall include a review of the
status of the City's 2013 -2014 Program performance, deliverables, schedules and
budget, toward achievement of the goals set forth in the PIP (Exhibit A), and the
Partnership's progress towards meeting overall Partnership goals set forth in Exhibit C.
Any decision - making shall be reached and documented in accordance with the
requirements of Section 7.1 above.
7.4. Regular Communication. Regular communication among Partnership representatives is
critical for the long -term success of the Partnership and achievement of Partnership
goals and objectives. Notwithstanding Section 7.3, above, the Partnership representatives
identified in writing by each Partner pursuant to Sections 6.2.1 and 6.3.1, respectively,
including other Program Participants, shall communicate regularly with each other to
review the status of the Program's goals, deliverables, schedules and budgets, and plan
for upcoming Program implementation activities, and to advise the other Party of any
problems associated with successful implementation of the Program. Any decision -
making during this communication process shall be reached and documented in
accordance with the requirements of Section 7.1 above.
7.5. Non - Responsibility for Other Party. Notwithstanding anything contained in this
Agreement in the contrary, a Party shall not be responsible for the performance or non-
performance hereunder of the other Party, nor be obligated to remedy any other Party's
defaults or defective performance.
2013 -14 Santa Ana Partnership Agreement 7
8. DOUBLE DIPPING PROHIBITED
In performing its respective Authorized Work obligations, the City shall implement the
following mechanism and shall take other practicable steps to minimize double - dipping:
8.1. Prior to providing incentives or services to an Eligible Customer, the City and its
Contractors shall obtain a signed form from such Eligible Customer stating that:
8.1.1. Such Eligible Customer has not received incentives or services for the same
measure from any SCG program or from another utility, state, or local program; and
8.1.2. Such Eligible Customer agrees not to apply for or receive incentives or services
for the same measure from any SCG program or from another utility, state, or local
program.
Each Party shall keep its Customer - signed forms for at least five (5) years after the
expiration or termination of this Agreement.
8.2. No Party shall knowingly provide an incentive to an Eligible Customer, or make
payment to a Contractor, who is receiving compensation for the same product or service
either through another ratepayer funded program, or through any other funding source.
8.3. The City represents and warrants that it has not received (and that its Contractor(s) has
not received), and will not apply for or accept Incentives or services for any measure
provided for herein or offered pursuant to this Agreement or the Program from any other
Utility program or from any other Utility, state or local program.
8.4. The Parties shall take reasonable steps to minimize or avoid the provision of incentives
or services for the same measures provided under the Program from another program or
other funding source ( "double- dipping ").
9. REPORTING
The Parties shall implement those reporting requirements as agreed upon, as the same may be
amended from time to time, or until the Commission otherwise requires or issues different or
updated reporting requirements for the 2013 -2014 Program, in which case and at which time
such Commission- approved reporting requirements shall replace the requirements.
10. PAYMENTS
10.1. Partner's Budget
10.1.1. Maximum Budget: The Partner Budget is set forth in Exhibit B to this Agreement
and represents maximum share of the Program's two -year Authorized Partnership
Budget for funding the performance of the Program by the City or Program
Participants. Additionally, Exhibit B sets forth the maximum non - incentive budget
on a periodic basis during the Program. The City shall not be entitled to
compensation in excess of the Partner's Budget (either on a periodic basis or in
2013 -14 Santa Ana Partnership Agreement 8
total), without written authorization by the Utility and receipt of a revised Exhibit B.
Consistent with Commission directives to maximize cost - effectiveness and energy
savings, the Partners' Budgets set forth in Exhibit B may be reallocated or adjusted
at any time by the Utility at its sole discretion, based upon the Utility's evaluation of
the City's commitment to, and progress toward the Program energy savings target,
other general objectives, goals, and milestones set forth herein.
10.1.2. Tracking: The Utility will track Program Expenditures against the objectives set
forth in Section 4.2 hereof, including tracking (or estimating) achievement towards
the specific energy savings targets set forth in Exhibit B, and will provide such
tracking information to the City on a regular basis, but in no event less than
quarterly. The tracking will enable the Utility to: (i) properly monitor and allocate
the Authorized Partnership Budget among all Utility Local Govermnent
Partnerships according to their individual performance and achievement of
respective goals and objectives, (ii) confirm or amend the Partner's Budget, set forth
in Exhibit B hereto, based on Program's performance of the goals and objectives set
forth in this Agreement;
10.1.3. Partner's Budget Adjustment: The Parties acknowledge that this Program is
offered in furtherance of the Commission's strategic energy efficiency goals for
California and is based on the City's agreement to help achieve such goals and its
desire to provide leadership to its community. To this end, in the event that the
Utility determines, in its sole discretion and through the tracking mechanism set
forth in Section 10. 1.2 above, that the City is not performing in accordance with the
goals and objectives set forth in this Agreement, then the Utility shall have the
unilateral right to reduce, eliminate, or otherwise adjust the Partner's Budget for the
remaining Program year or years (other than for Program Expenditures previously
committed by the City and approved by the Utility) by amending Exhibit B and
providing the amended Exhibit B to the City. Pursuant to this Section, any such
amended Exhibit B shall automatically be incorporated into this Agreement and take
effect thirty (3 0) days after delivery from the Utility to the City.
10.1.4. Partner's Budget Categories
10.1.4.1. Non - Incentive Budget: The Partner's Budget is comprised of a non -
incentive portion which includes separate categories for Marketing, Education
& Outreach, Technical Assistance and Direct Implementation, all of which are
more fully described in the Program Implementation Plan.
10.1.4.2. Incentive Budget: Incentives will be paid out of SCG's core program
budget at the then current rates and terms; however, the Partner will be eligible
for incentives from SCG's Calculated Program up to 80% of project costs.
10.2. Program Expenditures. The City, with SCG's prior approval, shall be entitled to
spend authorized funds, within the limits of the Partner's Budget on Program
Expenditures. The City shall not be entitled to reimbursement of Program Expenditures
for any item (i) not specifically identifiable to the Program, (ii) not previously approved
2013 -14 Santa Ana Partnership Agreement 9
by the Utility, (iii) not expended within the term of this Agreement, or (iv) not otherwise
reimbursable under this Agreement.
10.3. Payment to the City. In order for the City to be entitled to Gas Surcharge funds
for Program Expenditures:
10.3.1. The City or its representatives shall submit to the Utility, invoice(s) for
reimbursement of reported Program Expenditures, in a format acceptable to the
Utility, attaching all documentation reasonably necessary to substantiate the
Program Expenditures, including, without limitation, the following:
10.3.1.1. Contractor Costs: Copies of all Contractor invoices. If only a portion of
Contractor costs applies to the Program, the City or its representatives shall
clearly indicate the line items or percentage of the invoice amount that should
be applied to the Program as provided in Exhibit E.
10.3.1.2. Marketing, Education & Outreach: A copy of each distinct marketing
material produced, with quantity of a given marketing material produced and
the method of distribution.
10.3.1.3. Other expenditures: As pre - approved by the Utility, with sufficient
documentation to support the expenditure.
10.3.1.4. Allowable Costs: Only those costs as listed in the Allowable Cost Table
contained in the Reporting Requirements attached as Exhibit E can be
submitted for payment. All invoices submitted to SCG must report all costs
using the allowable cost elements shown on the Allowable Cost Table in
Exhibit E.
The City and its representatives understand and acknowledge that all of the City's
invoices for the 2013 -2014 Program and the Monthly Report shall be submitted to
the Utility.
10.3.2. The Utility reserves the right to reject the City's invoiced amounts for any of the
following reasons:
10.3.2.1. The invoiced amount, when aggregated with previous Program
Expenditures, exceeds the amount budgeted therefore in the Partner Budget for
such Authorized Work (as set forth in Exhibit B).
10.3.2.2. There is a reasonable basis for concluding that such invoiced amount is
unreasonable or is not directly identifiable to or required for the Authorized
Work, and /or the Program.
10.3.2.3. The invoiced amount contains charges for any item not authorized under
this Agreement or by the Commission, or is deemed untimely, unsubstantiated
or lacking proper documentation.
2013 -14 Santa Ana Partnership Agreement 10
10.3.3. The City or its representatives shall maintain for a period of not less than five (5)
years all documentation reasonably necessary to substantiate the Program
Expenditures, including, without limitation, the documentation set forth in Section
10.3.1 above. The City or its representatives shall promptly provide, upon the
reasonable request by the Utility, any payment documentation, records or
information in connection with the Program or its Authorized Work.
10.3.4. The Utility shall review and either approve, dispute or reject for payment the
reported Program Expenditures within twenty (20) Calendar Days of receipt of the
invoice. The Utility shall pay all undisputed amounts within thirty (30) Calendar
Days of receiving the corresponding invoice.
10.4. Payment of Incentives. Payment of incentives shall be made in accordance with
the applicable SCG program requirements, including terms and conditions, installation
data for EM &V process and only after appropriate program documents have been
submitted and approved, and the appropriate inspections of each project have been
completed to the Utility's satisfaction.
10.5. Shifting. The Utility may shift funds within the Authorized Partnership
Budget among Program Participants and /or shift funds within the Partner Budget among
budget categories (Marketing, Education & Outreach, Direct Implementation), which
categories and budget amounts are set forth in Exhibit B. Such shifting may be made by
the Utility to the maximum extent permitted under, and in accordance with, Commission
decisions and rulings to which the Program relates.
10.6. Reasonableness of Expenditures. The City shall bear the burden of ensuring that
its Program Expenditures are objectively reasonable. The Commission has the authority
to review all Program Expenditures for reasonableness. Should the Commission, at any
time, issue a finding of unreasonableness as to any Program Expenditure and require a
refund or return of the funds paid in the reimbursement of such Program Expenditure,
then the City shall be solely liable for such refund or return.
11. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES
Unless this Agreement is terminated pursuant to Section 25 below, or unless otherwise
agreed to by the Parties or so ordered by the Commission, the Parties shall complete all Program
Administrative activities (as defined in the PIP) and all reporting requirements by no later than
March 31, 2015, and all Direct Implementation and Marketing & Outreach activities by no later
than December 31, 2014.
12. FINAL INVOICES
The City or its representatives must submit final invoices to the Utility no later than March
31, 2015.
2013 -14 Santa Ana Partnership Agreement 11
13. INDEMNITY
13.1. Indenwityby the City. The City shall indemnify, defend and hold harmless the
Utility, and its respective successors, assigns, affiliates, subsidiaries, current and future
parent companies, officers, directors, agents, and employees, from and against any and
all expenses, claims, losses, damages, liabilities or actions in respect thereof (including
reasonable attorneys' fees) to the extent arising from (a) the City's negligence or willful
misconduct in the City's activities under the Program or performance of its obligations
hereunder, or (b) the City's breach of this Agreement or of any representation or
warranty of the City contained in this Agreement.
13.2. Indemnity by the Utility. The Utility shall indemnify, defend and hold harmless
the City, and its respective successors, assigns, affiliates, subsidiaries, current and future
parent companies, officers, directors, agents, and employees, from and against any and
all expenses, claims, losses, damages, liabilities or actions in respect thereof (including
reasonable attorneys' fees) to the extent arising from (a) the Utility's negligence or
willful misconduct in Utility activities under the Program or performance of its
obligations hereunder or (b) the Utility's breach of this Agreement or any representation
or warranty of the Utility contained in this Agreement.
13.3. LIMITATION OF LIABILITY. NO PARTY SHALL BE LIABLE TO THE
OTHER PARTY FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES WHATSOEVER WHETHER IN CONTRACT, TORT (INCLUDING
NEGLIGENCE) OR STRICT LIABILITY INCLUDING, BUT NOT LIMITED TO,
LOSS OF USE OF OR UNDER- UTILIZATION OF LABOR OR FACILITIES, LOSS
OF REVENUE OR ANTICIPATED PROFITS, COST OF REPLACEMENT POWER
OR CLAIMS FROM CUSTOMERS, RESULTING FROM A PARTY'S
PERFORMANCE OR NONPERFORMANCE OF THE OBLIGATIONS
HEREUNDER, OR IN THE EVENT OF SUSPENSION OF THE AUTHORIZED
WORK OR TERMINATION OF THIS AGREEMENT.
14. OWNERSHIP OF DEVELOPMENTS
The Parties acknowledge and agree that the Utility, on behalf of its Customers, shall own all
data, reports, information, manuals, computer programs, works of authorship, designs or
improvements of equipment, tools or processes (collectively "Developments ") or other written,
recorded, photographic or visual materials, or other deliverables produced in the performance of
this Agreement; provided, however, that Developments do not include equipment or
infrastructure purchased for research, development, education or demonstration related to energy
efficiency. Although the City shall retain no ownership, interest, or title in the Developments
except as may otherwise be provided in this Agreement, it will have a permanent, royalty free,
non - exclusive license to use such Developments.
15. DISPUTE RESOLUTION
15.1. Dispute Resolution. Except as may otherwise be set forth expressly herein, all
disputes arising under this Agreement shall be resolved as set forth in this Section 15.
2013 -14 Santa Ana Partnership Agreement 12
15.2. 15.2. Negotiation and Mediation. The Parties shall attempt in good faith to resolve
any dispute arising out of or relating to this Agreement promptly by negotiations
between the Parties' authorized representatives. The disputing Party shall give the other
Party written notice of any dispute. Within twenty (20) Calendar Days after delivery of
such notice, the authorized representatives shall meet at a mutually acceptable time and
place, and thereafter as often as they reasonably deem necessary to exchange
information and to attempt to resolve the dispute. If the matter has not been resolved
within thirty (30) Calendar Days of the first meeting, any Party may initiate a mediation
of the dispute. The mediation shall be facilitated by a mediator that is acceptable to both
Parties and shall conclude within sixty (60) Calendar Days of its commencement, unless
the Parties agree to extend the mediation process beyond such deadline. Upon agreeing
on a mediator, the Parties shall enter into a written agreement for the mediation services
with each Party paying a pro rata share of the mediator's fee, if any. The mediation shall
be conducted in accordance with the Commercial Mediation Rules of the American
Arbitration Association; provided, however, that no consequential damages shall be
awarded in any such proceeding and each Party shall bear its own legal fees and
expenses.
15.3. Confidentiality. All negotiations and any mediation conducted pursuant to Section
15.2 shall be confidential and shall be treated as compromise and settlement
negotiations, to which Section 1152 of the California Evidence Code shall apply, which
Section is incorporated in this Agreement by reference.
15.4. Injunctive Relief. Notwithstanding the foregoing provisions, a Party may seek a
preliminary injunction or other provisional judicial remedy if in its judgment such action
is necessary to avoid irreparable damage or to preserve the status quo.
15.5. Continuing Obligation. Each Party shall continue to perform its obligations under
this Agreement pending final resolution of any dispute arising out of or relating to this
Agreement.
15.6. Failure of Mediation. If, after good faith efforts to mediate a dispute under the
terms of this Agreement as provided in Section 15.2 above, the Parties cannot agree to a
resolution of the dispute, any Party may pursue whatever legal remedies may be
available to it at law or in equity, before a court of competent jurisdiction and with venue
as provided in Section 35.
16.1. Representation of both Parties. Each Party represents and warrants, as of the
Effective Date and thereafter during the term of this Agreement, that:
16.1.1. The Authorized Work performed by a Party and /or its Contractors shall comply
with the applicable requirements of all statutes, acts, ordinances, regulations, codes,
and standards of federal, state, and local governments, and all agencies thereof.
2013 -14 Santa Ana Partnership Agreement 13
16.1.2. The Authorized Work perfonned by a Party and/or its Contractors shall be free of
any clairn of trade secret, trade mark, trade name, copyright, or patent infringement
or other violations of any proprietary rights of any person.
16.1.3. Each Party shall conform to the applicable employment practices requirements of
(Presidential) Executive Order 11246 of September 24, 1965, as amended, and
applicable regulations promulgated thereunder.
16.1.4. Each Party shall contractually require each Contractor it hires to perform the
Authorized Work to indemnify each other Party to the same extent such Party has
indemnified each other Party under the terms and conditions of this Agreement.
16.1.5. Each Party shall retain, and shall cause its Contractors to retain, all records and
documents pertaining to its Authorized Work obligations for a period of not less
than five (5) years beyond the termination or expiration of this Agreement.
16.1.6. Each Party shall contractually require all of its Contractors to provide the other
Parties reasonable access to relevant records and staff of Contractors concerning the
Authorized Work.
16.1.7. Each Party will maintain, and may require its Contractors to maintain, the
following insurance coverage or self- insurance coverage, at all times during the
term of this Agreement, with companies having an A.M. Best rating of "A -, VII" or
better, or equivalent:
16.1.7.1. Workers' Compensation: statutory minimum.
16.1.7.2. Employer's Liability coverage: $1 million minimum.
16.1.7.3. Commercial General Liability: $1 million minimum per occurrence /$2
million minimum aggregate.
16.1.7.4. Commercial or Business Auto (if applicable): $1 million minimum.
16.1.7.5. Professional Liability (if applicable): $1 million minimum.
16.1.8. Each Party shall take all reasonable measures, and shall require its
Contractors to take all reasonable measures, to ensure that the Program funds in its
possession are used solely for Authorized Work, which measures shall include the
highest degree of care that such Party uses to control its own funds, but in no event
less than a reasonable degree of care.
17. PROOF OF INSURANCE
171. Evidence of Insurance. Upon request at any time during the term of this
Agreement, a Party shall provide evidence that its insurance policies (and the insurance
policies of any Contractor, as provided in Section 16.1.7) are in full force and effect, and
provide the coverage and limits of insurance that the Party has represented and
warranted herein to maintain at all times during the tern of this Agreement.
17.2. Self- Insurance. If a Party is self- insured, such Party shall upon request forward
documentation to the other Party that demonstrates to the other Party's satisfaction that
2013 -14 Santa Ana Partnership Agreement 14
such Party self - insures as a matter of normal business practice before commencing the
Authorized Work. Each Party will accept reasonable proof of self - insurance comparable
to the above requirements.
17.3. Notice of Claims. Each Party shall immediately report to the other Party, and
promptly thereafter confirm in writing, the occurrence of any injury, loss or damage
incurred by such Party or its Contractors or such Party's receipt of notice or knowledge
of any claim by a third party of any occurrence that might give rise to such a claim over
$100,000.
18. CUSTOMER CONFIDENTIALITY REQUIREMENTS
18.1. Non - Disclosure. Subject to any disclosures required pursuant to the Public
Records Act, the City, its employees, agents and Contractors shall not disclose any
Confidential Customer Information (defined below) to any third party during the term of
this Agreement or after its completion, without the City having obtained the prior written
consent of the Utility, except as provided by law, lawful court order or subpoena and
provided the City gives the Utility advance written notice of such order or subpoena.
18.2. Confidential Customer Information. "Confidential Customer Information"
includes, but is not limited to, a SCG customer's name, address, telephone number,
account number and all billing and usage information, as well as any SCG customer's
information that is marked "confidential ". If the City is uncertain whether any
information should be considered Confidential Customer Information, the City shall
contact the Utility prior to disclosing the customer information.
18.3. Non - Disclosure Agreement. Prior to any approved disclosure of Confidential
Customer Information, SCG may require the City to enter into a nondisclosure
agreement.
18.4. Commission Proceedings. This provision does not prohibit the City from
disclosing non- confidential information concerning the Authorized Work to the
Commission in any Commission proceeding, or any Commission - sanctioned meeting or
proceeding or other public forum.
18.5. Return of Confidential Information. Confidential Customer Information
(including all copies, backups and abstracts thereof) provided to the City by SCG, and
any and all documents and materials containing such Confidential Customer Information
or produced by the City based on such Confidential Customer Information (including all
copies, backups and abstracts thereof), during the performance of this Agreement shall
be returned upon written request by SCG.
18.6. Remedies. The Parties acknowledge that Confidential Customer Information is
valuable and unique, and that damages would be an inadequate remedy for breach of this
Section 18 and the obligations of the Parties are specifically enforceable. Accordingly,
the Parties agree that in the event of a breach or threatened breach of this Section 18 by
any Party, the Party whose Confidential Customer Information is implicated in such
breach shall be entitled to seek and obtain an injunction preventing such breach, without
2013 -14 Santa Ana Partnership Agreement 15
the necessity of proving damages or posting any bond. Any such relief shall be in
addition to, and not in lieu of, money damages or any other available legal or equitable
remedy.
19. TIME IS OF THE ESSENCE
The Parties hereby acknowledge that time is of the essence in performing their obligations under
this Agreement. Failure to comply with milestones and goals stated in this Agreement, including
but not limited to those set forth in Exhibit B of this Agreement, may constitute a material breach
of this Agreement, resulting in its termination, payments being withheld, Partner's Budget being
reduced or adjusted, funding redirected by the Utility to other programs or partners, or other
Program modifications as determined by the Utility or as directed by the Commission.
20. CUSTOMER COMPLAINT RESOLUTION PROCESS
The Parties shall develop and implement a process for the management and resolution of
Customer complaints in an expedited manner including, but not limited to: (a) ensuring adequate
levels of professional Customer service staff, (b) direct access of Customer complaints to
supervisory and /or management personriel; (c) documenting each Customer complaint upon
receipt; and (d) directing any Customer complaint that is not resolved within five (5) Calendar
Days of receipt by the City to the Utility.
21. RESTRICTIONS ON MARKETING
21.1. Use of Commission's Name. No Party may use the nanie of the Commission on
marketing materials for the Program without prior written approval from the
Commission staff. In order to obtain this written approval, SCG must send a copy of the
planned materials to the Commission requesting approval to use the Commission name
and /or logo. Notwithstanding the foregoing, the Parties shall disclose their source of
funding for the Program by stating prominently on marketing materials that the Program
is "fielded by California ratepayers under the auspices of the California Public Utilities
Commission."
21.2. Use of the SCG Name. The City must receive prior review and written approval
from the Utility for the use of the SCG name, mark or logo on any marketing or other
Program materials. The City shall allow five (5) Business Days for the Utility's review
and approval. If the City has not received a response from the Utility within the five (5)
Business Day period, then it shall be deemed that the Utility has approved such use.
21.3. Use of the City's Name. The Utility must receive prior review and written
approval from the City for the use of the City's name, marks or logos on any marketing
or other Program materials. The Utility shall allow five (5) Business Days for the City's
review and approval. If the Utility has not received a response from the City within the
five (5) Business Day period, then it shall be deemed that the City has approved such
use.
201.3 -14 Santa Ana Partnership Agreement 16
22. RIGHT TO AUDIT
The Parties agree that the other Party, and /or the Commission, or their respective designated
representatives, shall have the right to review and to copy any records or supporting
documentation pertaining to the their performance of this Agreement or the Authorized Work,
during nonnal business hours, and to allow reasonable access in order to interview any staff of
the City or the Utility who might reasonably have information related to such records. Further,
the Parties agree to include a similar right of the other Party and/or the Commission to audit
records and interview staff in any subcontract related to performance of the Authorized Work or
this Agreement.
23. STOP WORK PROCEDURES
The Utility may suspend the Authorized Work being performed in its service territory for
good cause, including, without limitation, concerns relating to program funding, implementation
or management of the Program, safety concerns, fraud or excessive customer complaints, by
notifying the City in writing to suspend any Authorized Work being performed in either SCG's
service territory. Any performance of Authorized Work by the City in SCG's service territory
shall stop immediately, and the City may resume its Authorized Work only upon receiving
written notice from the Utility that it may resume its Authorized Work.
24. MODIFICATIONS
Except as otherwise provided in this Agreement, changes to this Agreement shall be only be
valid through a written amendment to this Agreement signed by both Parties.
25, TERM AND TERMINATION
25.1. Tenn. This Agreement shall be effective as of the Effective Date. Subject to
Section 37, the Agreement shall continue in effect until March 31, 2015 unless otherwise
terminated in accordance with the provisions of Section 25.2 or 30 below.
25.2. Termination for Breach. Any Party may terminate this Agreement in the event of
a material breach by the other Party of any of the material terms or conditions of this
Agreement, provided such breach is not remedied within sixty (60) days written notice
to the breaching Party thereof from the non - breaching Party or otherwise resolved
pursuant to the dispute resolution provisions set forth in Section 15 herein.
25.3. Effect of Termination. Any termination by the City or by the Utility shall
constitute a termination of this Agreement in its entirety (subject, however, to the
survival provisions of Section 37).
25.3.1. Subject to the provisions of this Agreement, the City shall be entitled to Gas
Surcharge Funds for all Program Expenditures incurred or accrued pursuant to
contractual or other legal obligations for Authorized Work up to the effective date
of termination of this Agreement, provided that any invoices, documents or
information required under this Agreement or by the Commission are submitted in
accordance with the terms and conditions of this Agreement. The provisions of this
2013 -14 Santa Ana Partnership Agreement 17
Section 25.3.1 shall be the City's sole compensation resulting from any termination
of this Agreement.
25.3.2. In the event of termination of this Agreement in its entirety, the City shall stop
any Authorized Work in progress and take action as directed by the Utility to bring
the Authorized Work to an orderly conclusion, and the Parties shall work
cooperatively to facilitate the tenmination of operations and of any applicable
contracts for Authorized Work.
26. WRITTEN NOTICES
Any written notice, demand or request required or authorized in connection with this
Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally
recognized overnight courier, or first class mail, postage prepaid, to the address specified below,
or to another address specified in writing by a Party as follows:
The City:
Executive Director, Public Works Agency
City of Santa Ana
20 Civic Center Plaza, M -21
Santa Ana, CA 92701
Tel: (714) 647 -5654
Fax: (714) 647 -5622
SCG:
Southern California Gas Company
Paulo Morais, Energy Programs Supervisor
555 W. Fifth Street, GT28A4
Los Angeles, CA 90013
Tel: (213) 244 -3246
Fax: (213) 244-8252
Email: PMorais @semprautilities.com
Notices shall be deemed received (a) if personally or hand- delivered, upon the date of
delivery to the address of the person to receive such notice if delivered before 5:00 p.m., or
otherwise on the Business Day following personal delivery; (b) if mailed, three (3) Business
Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of
transmission, followed by telephone notification of transmission by the noticing Party; or (d) if
by overnight courier, on the Business Day following delivery to the overnight courier within the
time limits set by that courier for next -day delivery.
27. CONTRACTS
Each Party shall, at all times, be responsible for its Authorized Work obligations, and acts
and omissions of Contractors, subcontractors and persons directly or indirectly employed by
such Party for services in connection with the Authorized Work. Each Party shall require its
Contractors to be bound by terms and conditions which are the same or similar to those
contained in this Agreement, as the same may be applicable to Contractors.
28. RELATIONSHIP OF THE PARTIES
The Parties shall act in an independent capacity and not as officers or employees or agents of
each other. This Agreement is not intended to and does not form any "partnership" within the
meaning of the California Uniform Partnership Act of 1994 or otherwise.
2013 -14 Santa Ana Partnership Agreement 18
29. NON - DISCRIMINATION CLAUSE
No Party shall unlawfully discriminate, harass, or allow harassment against any employee or
applicant for employment because of sex, race, color, ancestry, religious creed, national origin,
physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age
(over 40), marital status, and denial of family care leave. Each Party shall ensure that the
evaluation and treatment of its employees and applicants for employment are free from such
discrimination and harassment, and shall comply with the provisions of the Fair Employment and
Housing Act (Government Code Section 12990 (a) -(f) et seq.) and the applicable regulations
promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The
applicable regulations of the Fair Employment and Housing Commission implementing
Govermnent Code Section 12990 (a) -(f), set forth in Chapter 5 of Division 4 of Title 2 of the
California Code of Regulations, are incorporated into this Agreement by reference and made a
part hereof as if set forth in full.
Each Party represents and warrants that it shall include the substance of the
nondiscrimination and compliance provisions of this clause in all subcontracts for its Authorized
Work obligations.
30. COMMISSION/UTILITY AUTHORITY TO MODIFY OR TERMINATE
This Agreement and the Program shall at all times be subject to the discretion of the
Commission, including, but not limited to, review and modifications, excusing a Party's
performance hereunder, or termination as the Commission may direct from time to time in the
reasonable exercise of its jurisdiction. In addition, in the event that any ruling, decision or other
action by the Commission adversely impacts the Program, the Utility shall have the right to
terminate this Agreement in accordance with the provisions of Section 25 above by providing at
least ten (10) days' prior written notice to the City setting forth the effective date of such
termination. Notwithstanding the right to terminate, the Parties agree to share in the
responsibility and to abide by Commmission energy policy supporting this Program. The Parties
agree to use all reasonable efforts to minimize the adverse impact to a Party resulting from such
Commission actions, including but not limited to modification of the required energy savings
goals set forth in Section 4.2 which are fundamental to this Agreement.
31. NON - WAIVER
None of the provisions of this Agreement shall be considered waived by either Party unless
such waiver is specifically stated in writing.
32. ASSIGNMENT
No Party shall assign this Agreement or any part or interest thereof, without the prior written
consent of the other Parties, and any assignment without such consent shall be void and of no
effect. Notwithstanding the foregoing, if SCG is requested or required by the Commission to
assign its rights and /or delegate its duties hereunder, in whole or in part, such assignment or
delegation shall not require the City's consent and the Utility shall be released from all
2013 -14 Santa Ana Partnership Agreement 19
obligations hereunder arising after the effective date of such assignment, both as principal and as
surety.
33. FORCE MAJEURE
Failure of a Party to perform its obligations under this Agreement by reason of any of the
following shall not constitute an event of default or breach of this Agreement: strikes, picket
lines, boycott efforts, earthquakes, fires, floods, war (whether or not declared), revolution, riots,
insurrections, acts of God, acts of government (including, without limitation, any agency or
department of the United States of America), acts of terrorism, acts of the public enemy, or
rationing of gasoline or other fuel or vital products, inability to obtain materials or labor, or other
causes which are beyond the reasonable control of such Party.
34. SEVERABILITY
In the event that any of the terms, covenants or conditions of this Agreement, or the
application of any such term, covenant or condition, shall be held invalid as to any person or
circumstance by any court, regulatory agency, or other regulatory body having jurisdiction, all
other terms, covenants, or conditions of this Agreement and their application shall not be
affected thereby, but shall remain in fill force and effect, unless a court, regulatory agency, or
other regulatory body holds that the provisions are not separable from all other provisions of this
Agreement.
35. GOVERNING LAW; VENUE
This Agreement shall be interpreted, governed, and construed under the laws of the State of
California as if executed and to be performed wholly within the State of California. Any action
brought to enforce or interpret this Agreement shall be filed in Orange County, California.
36. SECTION HEADINGS
Section headings appearing in this Agreement are for convenience only and shall not be
construed as interpretations of text.
37. SURVIVAL
Notwithstanding completion or termination of this Agreement, the Parties shall continue to
be bound by the provisions of this Agreement which by their nature survive such completion or
termination. Such provisions shall include, but are not limited to, Sections 9, 10, 13, 14, 15, 18,
22, 35 and 38 of this Agreement.
38. ATTORNEYS' FEES
Except as otherwise provided herein, in the event of any legal action or other proceeding
between the Parties arising out of this Agreement or the transactions contemplated herein, each
Party in such legal action or proceeding shall bear its own costs and expenses incurred therein,
including reasonable attorneys' fees.
2013 -14 Santa Ana Partnership Agreement 20
39. COOPERATION
Each Party agrees to cooperate with the other Parties in whatever manner is reasonably
required to facilitate the successful completion of this Agreement.
40. ENTIRE AGREEMENT
This Agreement (including all of the Exhibits and Attachments hereto which are incorporated
into this Agreement by this reference) contains the entire agreement and understanding between
the Parties and merges and supersedes all prior agreements, representations and discussions
pertaining to the subject matter of this Agreement.
This Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together shall be deemed to be one and the same
instrument.
2013 -14 Santa Ana Partnership Agreement 21
SIGNATURE PAGE
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their duly authorized representatives.
The City:
SANTA ANA:
Name: Maria D. Huiz
Title: Clerk of the Council
Date:
Name: Edwin "W' iam" Galvez, P.E.
Name: David Cavazos
Title: City Manager
Date:
'ee�
Name: Laura Sheedy
Title: Assistant City At orney
Date:
Title: Interim Executive Director, Public Works Agency
Date:
The Utility:
SCG:
SOUTHERN CALIFORNIA GAS COMPANY:
–B–y- rank Spasaro
Title: Energy Efficiency Partnerships anager
Date:
2013 -14 Santa Ana Partnership Agreement 22
EXHIBITS
Exhibit A — 2013 -2014 Program Implementation Plan
Exhibit B — 2013 -2014 Goals & Program Budget
Exhibit C — EM &V Plan
Exhibit E — Allowable Costs
2013 -14 Santa Ana Partnership Agreement 23
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Program Name: Local Government Partnerships
Program ID: Various
Program Type: Local Government Partnership
Southern California Gas Company's (SoCalGas) Local Government Partnership Programs for
the 2013 -2014 Transition Period is complex and multi - dimensional in various ways that
SoCalGas initiated with the work in its 2010 - 2012 portfolio. First, local governments are a
distinct customer segment that operates with their own unique challenges and needs related to
energy efficiency. Second, local governments also serve as a delivery channel for specific
products and services when they serve as Local Government Partnerships. Finally, local
governments have a unique role as leaders of their communities. Increasingly, local governments
are interpreting their moral responsibility for community well -being to include reducing
greenhouse gas (GHG) emissions, increasing renewable energy usage, protecting air quality,
creating green jobs, and making the community more livable and sustainable.
In response to the Commissions directive to continue "successful" government partnerships,
SoCalGas hosted a public external stakeholder meeting with labor groups, environmentalists,
academics, LGP's and others to seek input on our programs. A follow -up webinar with
participants was conducted to share the results from the meeting. SoCalGas has partnered with
SCE to further engage with their LGP's through meetings to seek partner feedback on their
accomplishments, municipal and community needs as well as discuss success criteria. Through
this open and collaborative process, SoCalGas and SCE were able to share feedback and
conclusions through a webinar with their partners, and members of LGSEC. After completing a
critical and comprehensive review of all the programmatic activities each local government
partner engaged in, SoCalGas and SCE developed the following list of success criteria that was
applied across each partnership concentrating on Government Facilities, Core Program
Coordination/Implementation and Strategic Plan Menu Support:
1. Did the Partnership complete audits and other project opportunity identification initiatives to
plan municipal retrofits?
2. Did the Partnership complete retrofits and substantially achieve cost- effective energy savings
goals for municipal facilities?
3. Did the Partnership conduct community events that increased community awareness of
EE /DR/DG opportunities and participation in EE programs/
4. Did the Partnership leverage the local government relationships and communications with
the community to increase participation for core programs?
5. Did the Partnership leverage local government authority in advancing strategic plan goals
including, but not limited to the following:
a. Codes and Standard training
b. Reach codes
c. Climate Action Plans and Energy Action Plans
d. Energy Management Systems /Enterprise Energy Management
e. Energy policies
Ensuring Continued Partnerships Meet Success Criteria
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
The five (5) identified success criteria represent what SoCalGas and SCE felt were the core
components that should be present in any Partnership. In the course of critically evaluating each
partnerships programmatic activities, it also became apparent that not only do these criteria
represent what a successful partnership looks like, but that these criteria are the progeny of the
unique collaborative relationship present in our service territory, as such, the aggregate value of
these criteria applied across the scope of the LGP program is greater than the sum of each
individual partners contribution. To that end, the following provides details on how the LGP
program and its individual partners will continue to meet the criteria identified above.
Looking across the Program, each Partnership is anticipated to complete the targeted goals set
forth in the 2010 -2012 program cycle, and has thus been identified as a "successful" Partnership
to continue in the 2013 -2014 Transition Period. Moving forward, the LGP program will be
working toward meeting the mid -term goals identified in the Energy Efficiency Strategic Plan,
building off the success and momentum established during the 2010 -2012 cycle.
SCE and SoCalGas have identified separate set of criteria to address our interest in expanding
local government programs. The IOU's developed the following list of expansion criteria that
will be applied across each partnership that is included into the program in 2013 -14. Partnerships
will address the following priority areas:
1. Deeper retrofits within
2. Workforce education and training
3. Codes and Standards enforcement and training
4. Emerging technologies deployment
5. Water /Energy Nexus
Further consideration will be taken on what additional resources will the Partnerships leverage to
implement the expansion and address how the expanded Partnership complements existing
Partnership efforts. SoCalGas has also been collaborating with PG &E, and will share the same
criteria for those partnerships that are shared with PG &E.
The Government Partnership program is designed to reach local governments in all of their roles.
Depending upon the activity, SoCalGas may play a different role with the local government,
ranging from service provider to supporter to equal partner. Local governments increasingly
engage in strategic planning for GHG reduction not only in their facilities (represented in the
municipal GHG inventory) but also in the community (analyzed in the community GHG
emissions inventory). Opportunities increase for partnerships with utilities to meet mutual goals
of energy reduction. Some of the key programs which LGPs will support in 2013 -14 include
EUC worldorce Education and Training, and Business Improvement Districts. These
governments can not only coordinate and integrate demand -side management (DSM)
opportunities in each sector or market they influence, but also effectively leverage and
promulgate low- income offerings.
SoCalGas will develop a marketing plan and marketing collateral based on customer
segmentation work and research to support outreach efforts. This customer segmentation will
help SoCalGas develop an understanding of customers' needs and respond accordingly with
products and services that customer's want. The segmentation analysis looks at what the
customer requires and how the customer is engaged with SoCalGas. SoCalGas will use many
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
delivery channels and marketing and outreach approaches to effectively reach customers. This
will include a team of SoCalGas experts and industry professionals, varying by market sub -
segment, to deliver integrated offerings to the customer.
Expansion of Local Government Partnerships
In the effort to expand on SoCalGas' success of their local government partnerships the LGP's
will concentrate on several areas deemed necessary. LGP's will continue to promote EUC, a one-
stop -shop for home improvement projects that lower energy use, conserve water and natural
resources, and makes residences healthier and more comfortable. Deep energy retrofits will be a
priority in the 2013 -2014 program cycle. A deep energy retrofit is a whole - building analysis and
construction process that uses integrative design to achieve much larger energy savings than
conventional energy retrofits. Deep energy retrofits can be applied to both residential and non-
residential ( "commercial ") buildings.
Other Expansion Opportunities will include closing the gap between partnerships that currently
have partnerships with SCE and adopting those partners into SoCalGas LGP program in 2013 -14
transition period. SoCalGas has initiated discussions with several potential new partners which
are currently in partnerships with SCE. The new partnerships SoCalGas is joining include the
following: City of Beaumont Partnership, City of Redlands Partnership, Western Riverside
Council of Governments (COG) Energy Partnership, San Gabriel Valley COG Partnership, City
of Santa Ana Partnership, City of Simi Valley Partnership, Gateway Cities Partnership, Westside
Cities Partnership.
SoCalGas has completed the first round of discussions, and is providing draft agreements to new
partners.. SoCalGas has provided details of the new partnerships herein including their PIPS and
budget details. Design for new PIPs is consistent with CPUC guidance including comprehensive
and deep retrofits.
SoCalGas has listened to feedback received from LGPs on needs which they face for being able
to move forward with projects. The majority of local governments struggle with securing
energy /sustainability resources, and current budget conditions make the availability of such
resources unlikely for the foreseeable future. Limited staff, specific skills and geographical
constraints limit local government's ability to engage in hands on energy efficiency.
SoCalGas intends to start building resources to fill the noted gaps through a "virtual center"
approach as an expansion to our current Local Government Partnership program offerings. The
Program will commence in one region initially with the intent to roll out service territory wide in
2013 -14 program cycle. The program will support local governments (both partners and non -
partners) and intends to drive increased comprehensive energy efficiency and will create deep
energy savings by local governments by complimenting and leveraging resources as well as
filling gaps that currently exist within local government organizations, CEC, PUC and SoCalGas
energy efficiency programs. These gaps prevent local government from successfully
implementing higher value energy efficiency projects that demonstrate energy efficiency
leadership to the community and increase community wide energy efficiency participation.
Lessons learned from past partnership initiatives have identified the need for improvement in
resources that provide cost - effective, on demand energy management services, and expertise to
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
enable local governments to create responsive, sustainable, and widespread public sector energy
management results.
The "virtual center" approach will provide turnkey resources through hands on support, results
oriented energy management, and augmenting existing Local Government Partnerships. A suite
of resources shall include project management support, engineering and analytical support,
library of boiler plate agreements and templates that can support local government with the RTP
process as well as assistance securing financing from various sources. Providing these resources
will result in improved energy management activity and increased program participation through
energy efficiency and financing programs.
2. Projected Program Budget Table
Table 1
Program
tt
Main /Sub Program Name
Administrative
Amount
Marketing
Amount
Direct
Implementatio
n Amount
Incentive
Amount
Total Program
Budget Amount
Local Government Partnership Programs
3742
LGP -LA Cc Partnership
$74,419
$43,431
$316,096
$0
$433,946
3743
LGP -Kern Co Partnership
$55,609
$30,446
$122,408
$0
$208,464
3744
LGP- Riverside Cc Partnershlp
$54,022
$39,305
$200,790
$0
$294,117
3745
LGP -San Bernardino Co Partnership
$60,799
$38,305
$190,613
$0
$289,717
3746
LGP -Santa Sarbara Co Partnership
$90,384
$54,461
$84,449
$0
$229,294
3747
LGP -South Bay Cities Partnership
$73,335
$26,866
$207,731
1 $0
$307,932
3748
LGP -San Luis Obispo Cc Partnership
$81,878
$47,594
$85,091
$0
$214,563
3749
LGP -San Joaquin Valley Partnership
$64,732
$32,033
$97,524
$0
$194,289
3750
LGP- Orange Cc Partnership
$67,438
$32,999
$171,500
$0
$271,938
3751
LGP -SEEC Partnership
$46,659
$24,200
$224,535
$0
$295,394
3752
LGP - Community Energy Partnership
$78,632
$41,305
$132,710
$0
$252,647
3753
LGP - Desert Citles Partnership
$10,634
$12,328
$27,638
$0
$50,600
3754
LGP- Ventura County Partnership
$99,378
$33,058
$203,725
$0
$336,161
3776
LG P-Gateway Cities Partnership
- $71,277 -
$34,282 -.
$220,564
$0::
::$326,123 -:
3777
LGP San Gabriel Valley LOG Partnership.
'.$102,260 -'
$47,399
$330,846
$0.-
;$480,505
3778
LGP-Clty of Santa Ana Partnership
'.$51,805
$25,282.
$65,705
'$0
$143,792
3779
LGP West Side Cities Partnership
.: $43,569 -'.
$15,141 `
$39,423
,$0..
$98,133
3780
LGP -City of Simi Valley Partnership
: $35,943
$19,142
$43,423'
'$0 .
:$98,508
3781
LGPCt of Redlands Partnership
$48,080 -
$29,423 -'
$42,564
$120,067 '.
3782
LGP -City: of Beaumont Partnership
::$37,799
$24,282
$40,564:'
'$0
'$102,645
3783
LGP - Western Riverside Energy Partnership
J.$1OO,151 -.
$45,399.:
$245,705
".$0
::$391,255
3755
LGP -Local Government Energy Efficiency Pilots
: $30,000
$100,000
$300,000
> -$0
:$430,000
3773
LGP -New Partnership subject to CPUC ED approva
$149,218
$167,124
$280,529
$0
$596,871
3774
LGP -LG Regional Resource Placeholder
$93,194
$40,000
$511,673
$0
$644,867
TOTAL:
$1,621,215
$1,004,805
$4,185,806
$0
$6,811,828
Note: SoCalGas LGP programs are non - resource; therefore, the above table indicates $0 for the
incentive. LGPs will funnel projects to Incentive and Rebate Programs.
3. Program Element Description and Implementation Plan
This LGP Master PIP describes each of the program elements listed below. The Master PIP
discusses the major program elements of Government Facilities, California Long Term Energy
Efficiency Strategic Plan (Strategic Plan) Support, and Core Program Coordination in an over-
arching context in sections 4 - 6. Following the Master PIP discussion are sub -PIPS (which also
cover sections 4 - 6) for the additional unique program elements for each of the individual Local
Government Partnerships. The sub -PIPS also discuss the three major program elements
(Government Facilities, Strategic Plan Support, and Core Program Coordination). The sub -PIPS
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
for individual LGPs provide details regarding any targeted or distinct aspects of the three main
elements as they relate to that particular LGP.
Program Element
A. Government Facilities
Al —Deep Retrofit
Al — Deep Retrofit of County and Municipal
Buildings
A2 - Retro- commissioning
A2 - Retro- commissioning
A3 - Integrating Demand Response
A3 - Integrating Demand Response
A4 - Technical Assistance
A4 - Technical Assistance
A5 - On -Bill Financing
A5 - On -Bill Financing
B. Strategic Plan Support
BI - Code Compliance
B2 - Reach Code Support
B3 - Guiding Document Support
B4 - Financing for the Community
B5 - Peer to Peer Support
C. Core Program Coordination
Cl- Outreach Education
C2 - Third Party Program Coordination
C3- Technical Assistance
D. Local Government Regional Resource Program-
(Unique Program Element)
E. Individual Local Government Partnerships
Element - Government Facilities
4 — Program Element Description and Implementation Plan — Element A - Government
Facilities
A. Government Facilities
Al —Deep Retrofit
A2 - Retro- commissioning
A3 - Integrating Demand Response
A4 - Technical Assistance
A5 - On -Bill Financing
Overview
The Government Facilities element will be implemented by most of the unique individual Local
Government Partners (LGPs). This section (4A — 6A) describes the standard overview, rationale,
outcomes, and barriers associated with the Government Facilities element by an LGP. If an
individual LGP has a distinctive or targeted approach to Government Facilities, that LGP's
individual PIP will contain additional information. The individual LGPs will primarily target
local government facilities /sites that are owned or leased by public agencies including city halls,
administrative offices, recreation centers, fire stations, libraries.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Individual LGPs play an important role in assisting local governments (cities, counties and
special districts) with retrofitting the facilities that they own and operate to achieve short and
long term energy savings. While all local governments have access to SoCalGas programs and
incentives to save energy, SoCalGas Government Partnership Program will work closely with
the LGPs to build local capacities to achieve deep retrofits in government facilities' energy
savings and to place these projects in the context of sustainability and climate change initiatives.
Approaching efficiency through deep retrofits in government facilities in this way not only
achieves short and long term energy savings, it also demonstrates a commitment to energy
efficiency to the local government's constituents and the community at large. This, in turn,
enables government partnerships to become champions for energy efficiency programs and other
utility programs to further reduce usage in their communities. Additionally, a comprehensive
approach to government facilities will be an important step to addressing Assembly Bill 32
(AB32) and other statewide or local GHG reduction requirements.
This program element will include five sub - elements: Deep retrofits for Government Facilities,
Government Facilities Retro - commissioning, support Integrated Demand Response, provide
Technical Assistance, and On -Bill Financing.
Al - Retrofits: Local Government Partnerships which choose to include a Government
Facilities Retrofit element in their programs will achieve energy savings by providing technical,
financial, managerial and administrative support to the government actor (usually a facilities
manager) who initiates and implements deep energy - efficiency retrofit projects. Sometimes this
entity is the same as the Partner, and other times it is a different entity. The degree of assistance
provided will be tailored to each agency's needs, taking into account for energy savings
potential, cost effectiveness, level of commitment, available funds and in -house technical
expertise. This program element will be leveraged by and integrated with other programs such as
retro- commissioning, supporting demand response and self- generation as appropriate to achieve
comprehensive impacts while minimizing lost opportunities.
Energy savings will be based on measures installed, e.g., retrofitted. Measures include, but are
not limited to, the following:
Measure End Use Types Planned
Boiler System Retrofits, Boiler
Control
HVAC, Economizer
Water Heating, Solar Thermal
Natural Gas Water Pumps
Other
A2 - Retro- commissioning (RCx): Local Government Partnerships which choose to include a
Government Facilities Retro - commissioning element in their programs will provide similar
services as those described above for retrofits. RCx is a systematic process for identifying less -
than- optimal performance in an existing building's equipment, lighting, and control systems and
making necessary adjustments. Whereas retrofitting involves replacing outdated equipment, RCx
focuses on improving the efficiency of what is already in place. RCx will serve as a process for
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
identifying opportunities for deep retrofits. As mentioned in Al, by bundling RCx with retrofits
and other comprehensive options, the customer will optimize their efficiency and get the best
bang for the buck.
Measures include but are not limited to the following:
Measure End Use Types Planned
Boilers
HVAC controls and tune up
Water Heating
Other
A3 — Integrating Demand Response: LGPs will determine demand response (DR) potential in
the course of comprehensively evaluating sites for energy efficiency retrofit and retro-
commissioning opportunities. DR will be integrated with energy efficiency and referrals to DR
programs will be made as appropriate. In addition to DR programs, partnerships will continue to
identify self - generation opportunities. SoCalGas will work with the Partnerships to ensure that
comprehensive packages are made available to the local governments within that Partnership,
including, for example a menu of DR options. The LOP will promote offerings through an
integrated marketing collateral and sales approach. With additional market segmentation and
feedback from customers, the utilities will adjust approaches in order to offer the combination of
programs to best meet the varied needs of customers. The goal is to integrate offerings through
building auditing and assessment, marketing materials and the strategic sales approach.
A4 - Technical Assistance:
While SoCalGas makes technical assistance available to all governments, the LGPs will have
targeted resources to provide technical assistance to the agencies within each LGP's geographic
area. This assistance is an integral component of LGP administered energy efficiency programs
and may take the form of engineering audits, equipment specifications, engineering and cost -
effectiveness calculations, field inspections, and equipment testing and analysis, and is an
integral component of LGP - administered energy efficiency programs. Partnerships will provide
technical support for developing, packaging and completing energy - efficient retrofit projects.
Additionally, SoCalGas will provide partnerships with training and access to benchmarking
technology such as the USEPA /Energy Star Benchmarking tool to identify the government
facilities with the highest potential. Partnerships will also provide resources for city staff training
and certification in the following; Building Operator Certification, Certified Energy
Management, LEED accreditation, Green Point rated and other applicable trainings. This training
will serve to build knowledge of energy management and resource conservation within the LGP.
A5 - On -Bill Financing
On -Bill Financing (OBF) will be offered to local governments for the qualified energy efficiency
projects. In addition to OBF, LGPs may utilize other financing options such as CEC loans or
municipal bonds as well as other state /federal grant programs.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Target Audience
Al — Retrofit
The target audience is Government Facilities, which can include mumicipal administration
buildings as defined by NAICS 3 such as:
City Libraries
Fire Stations
County Medical Hospitals
County Correctional Facilities
Police Stations
Municipal Teen Centers
Municipal Recreation Centers
City/ County Museums
Municipal Animal Shelters
Public Works Department Facilities
Municipal Water Agencies
Municipal Transit Agencies
A2 — Retro- commissioning
Same as Al
A3- Integrating Demand Response
Same as Al
A4 — Technical Assistance
Technical assistance associated with government facility retrofits will be targeted at the
appropriate city staff including Department of Public Works, Energy Office, Department of
Building Inspection, Department of the Environment, etc. While each partnership might vary
slightly, the key target audience will be energy managers.
A5 — On -Bill Financing
SoCalGas offers zero percent financing to eligible customers with up to $250,000 per meter for
taxpayer - funded institutional customers (e.g., cities, counties, other public agencies, etc.) and
$100,000 per meter for non - institutional customers.
Implementation
Al — Retrofit
The LGPs will offer a comprehensive portfolio of energy efficiency programs that target deep
retrofits in municipal facilities. Partnerships will seek opportunities for comprehensive energy
efficiency retrofits in municipal facilities to achieve deep retrofits by bundeling a combination
projects such as HVAC, hot water heating, lighting, vending machines, and computer networks.
By partnering with local governments, Partnerships are well positioned to promote energy
efficiency in their communities. Retrofit program offerings will include energy audits,
calculated and prescriptive rebates, and direct installation of a comprehensive portfolio of
measures. To promote this program element, Partnerships will distribute throughout their
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
networks marketing materials and information that is well coordinated with utility and statewide
marketing plans. The Partnerships will also leverage their community relationships as well as
community based organizations and associations. Partnerships may also directly market to
municipal and special district staffs and engage key stake holders within the local government
and the community. Partnerships will work to achieve both immediate and comprehensive, long-
term energy savings. Energy efficiency strategies and measures will be coordinated throughout
municipal departments to streamline implementation. Partnerships will implement energy
efficiency by providing comprehensive assessments, conservation measures and training and
education to the local governments.
A2 — Retro- commissioning (RCx)
LGPs with a Government Facilities Retrofit element may choose to include a Government
Facilities RCx program element. Such LGPs will perform field -based functional tests at the
building system and /or building subsystem level to identify RCx opportunities that will deliver
energy and demand savings. Each Partnership will tailor minimum criteria (as developed by
SoCalGas) to identify RCx projects that will deliver the most savings. Each potential project
will be assessed by technical feasibility and cost effectiveness. Preliminary investigation of a
site's potential will include on -site equipment testing, monitoring, and /or verifying proper
operation and calibration of a sample of the building systems and /or building sub- systems to be
included in the proposed RCx projects.
A3- Integrating Demand Response
In evaluating opportunities in government facilities, Government Partnerships will also
determine demand response potential. LGPs will make referrals to demand response programs
as appropriate. In addition to demand response programs, partnerships will continue to identify
self - generation. Refer to the Integration PIP for more detailed information.
A4 — Technical Assistance
Assistance will be tailored to each agency's needs, scaled to the potential energy savings and
level of commitment of the participating agency, and strategically applied to leverage the most
savings from available resources. Technical assistance may also include education and training,
support for peer networking to support best practices, team building and staff training.
A5 — On -Bill Financing
Refer to the OBF section included in Testimony Chapter 3
5 - Program Element Rationale and Expected Outcome — Element A - Government Facilities
a) Quantitative Baseline and Market Transformation Information
Market Transformation (MT) metrics proposed in Tables 2 and 3 are preliminary. The
proposed metrics are meant to initiate a collaborative effort to elaborate meaningful metrics
that will provide overall indicators of how markets as a whole are evolving. MT metrics
should neither be used for short -term analyses nor for specific program analyses; rather,
should focus on broad market segments.
Market transformation is embraced as an ideal end state resulting from the collective efforts
of the energy efficiency field, but differing understandings of both the MT process and the
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
successful end state have not yet converged. The CPUC defines the end state of MT as
"Long- lasting sustainable changes in the structure or functioning of a market achieved by
reducing barriers to the adoption of energy efficiency measures to the point where further
publicly - funded intervention is no longer appropriate in that specific market."' The Strategic
Plan recognizes that process of transformation is harder to define than its end state, and that
new programs are needed to support the continuous transformation of markets around
successive generations of new technologies 2.
Market transformation programs differ from resource acquisition programs on 1) objectives,
2) geographical and 3) temporal dimensions, 4) baselines, 5) performance metrics, 6)
program delivery mechanisms, 7) target populations, 8) attribution of causal relationships,
and 9) market structures3. Markets are social institutions4, and transformation requires the
coordinated effort of many stakeholders at the national level, directed to not immediate
energy savings but rather to intermediary steps such as changing behavior, attitudes, and
market supply chains as well as changes to codes and standards. Resource acquisition
programs rely upon the use of financial incentives, but concerns have been raised that these
incentives distort true marketTrice signals and may directly counter market transformation
progress 6. According to York , "Market transformation is not likely to be achieved without
significant, permanent increases in energy prices. From an economic perspective, there are 3
ways to achieve market transformation: (1) fundamental changes in behavior, (2) provide
proper price signals, and (3) permanent subsidy."
The question of what constitutes successful transformation is controversial because of a
Catch -22: Market transformation is deemed successful when the changed market is self -
sustaining, but that determination cannot be made until after program interventions are
ended. Often, however, the need for immediate energy and demand savings or immediate
carbon- emissions reductions will mean that program interventions may need to continue,
which would interfere with the evaluation of whether MT is self - sustaining. Market
transformation success has also been defined in terms of higher sales of efficient measures
than would have otherwise occurred against a baseline absent of program interventions. The
real world, however, provides no such control condition. Evaluators must estimate these
baselines from quantitative factors such as past market sales that may be sparse and /or
inaccurate - particularly for new products. Evaluations must also defer to expert judgments
on what these baselines may have been as well as on the degree of successful market
California Public Utilities Commission Decision, D.98 -04 -063, Appendix A.
'California Public Utilities Commission (2008) California LongTernv Energy Eficiency Strategic Plan, p. 5. Available at
http:// www. catiforiiiaenergycf ficiency .com /docs /EEStrategioPlan.pdf
' Peloza, .J., and York, D. (1999), "Market Transformation: A Guide for Program Developers." Energy Center of Wisconsin.
Available at: http: / /www.eew.org /eewresults /i89 -l.pdf
a nlumstein, C., Goldstone, S, & Lutzenhiser, L. (2001) "From technology transfer to market transformation'. Proceedings of the
European Council for an Energy Efficient Economy Summer Study. Available at
http://www.cceec.org/cont'erence_proceedings/eceec/200 I /Panel _2 /p2_7 /Paper/
s Sebold, F. D., Fields, A., Slcumatz, L, Feldman, S., Goldberg, M., Keating, K., Peters, J. (2001) A Frannernorhfor Planning and
Assessing Publicly Funded Energy Efficiency. p. 6 -4. Available at www,calmac.org.
e Gibbs, M, and Townsend, J. (2000). The Role of Rebates in Market Transformation:
Friend or Foe. In Proceedings front 2000 Sunnmer Study on Energy Efficiency in
Buildings.
r York, D, (1999). "A Discussion and Critique of Market Transformation', Energy Center of Wisconsin. Available at
http://www.ecw,org/ecwrestilts/186-1,pcil.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
transformations. Due to the subjective nature of these judgments, it is imperative that
baselines as well as milestone MT targets be determined and agreed upon through
collaborative discussion by all stakeholders, and these targets may need periodic revision as
deemed necessary by changing context.
Market transformation draws heavily upon diffusion of innovation theory9, with the state of a
market usually characterized by adoption rate plotted against time on the well -known S-
shaped diffusion curve. In practice, however, the diffusion curve of products may span
decades10. Market share tracking studies conducted 3, 5 or even 10 years after the start of an
MT program may reveal only small market transformation effects t 1. The ability to make
causal connections between these market transformation effects and any particular program's
activities fades with time, as markets continually change and other influences come into play.
These challenges mentioned above are in reference to programs that were specifically
designed to achieve market transformation; and these challenges are only compounded for
programs that were primarily designed to achieve energy and demand savings. However,
since the inception of market transformation programs almost two decades ago, many lessons
have been learned about what the characteristics of successful MT programs are. First and
foremost, they need to be designed specifically to address market transformation. "The main
reason that (most) programs do not accomplish lasting market effects is because they are not
designed specifically to address this goal (often because of regulatory policy directions given
to program designers.) 12" The Strategic Plan recognizes that regulatory policies are not yet in
place to support the success of market transformation efforts13, but also reflects the CPUC's
directive to design energy efficiency programs that can lay the groundwork for either market
transformation success or for codes and standards changes.
Above all else, the hallmark of a successful market transformation program is in the
coordination of efforts across many stakeholders. The most successful MT programs have
involved multiple organizations, providing overlapping market interventions 14. The Strategic
Plan calls for coordination and collaboration throughout, and in that spirit the utilities look
forward to working with the CPUC and all stakeholders to help achieve market
transformation while meeting all the immediate energy, demand, and environmental needs.
Drawing upon lessons learned from past MT efforts, the Energy Center of Wisconsin's guide
for MT program developers 15 suggests that the first step is not to set end -point definitions,
progress metrics or goals. Rather, the first steps include forming a collaborative of key
participants. As the Strategic Plan suggests, these may include municipal utilities, local
governments, industry and business leaders, and consumers. Then, with the collective
expertise of the collaborative, we can define markets, characterize markets, measure
s Nadel, S., Thorne, J., Sachs, H., Prindle, B., and Elliot, R.N. (2003). "Market Transformation: Substantial Progress from a
Decade of Work." American Council For an Energy - Efficient Economy, Report Number A036. Available at:
http://www,accee.org/pubs/a036ftill.pdf
Rogers (1995) Diffusion of Innovations, 5 °i Ed.
10 Example in bottom chart of this graphic from NYTimes:
http: / /www.nytimes,com /imagepages/ 2008 /02 /l0/ opinion /l Oop.graphic.reacly,html
Scheid et al (2001) p. 6 -5,
Peters, J.S, Mftst,B., Ignelzi, P., Megdat, L.M. (1998). Market Effects Summary Study Final Report Volume 1. Available at
http://citmac.org/publications/19981215CA-DOOOIME.PDF.
" CPUC (2008) Strategic Plan, p. 5.
14 Nadel, Thorne, Saches, Prindle & Elliot (2003).
" Peloza & York, (1999).
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
baselines with better access to historical data, and define objectives, design strategies and
tactics, implement and then evaluate programs. The collaborative will also provide insights
that will set our collective expectations for the size of market effects we can expect, relative
to the amount of resources we can devote to MT. No one organization in the collaborative
will have all the requisite information and expertise for this huge effort. This truly needs to
be a collaborative approach from the start.
The metrics and baselines described below in Tables 2 and 3 are presented for the purposes
of starting the much- needed discussion between all key participants. These are suggestions,
intended to allow key participants to pilot -test processes for establishing baseline metrics,
tracking market transformation progress, and for refining evaluation tools. Early trial of these
evaluation metrics will reveal any gaps in data tracking so that we may refine our processes
before full -scale market transformation evaluations take place.
The set of metrics we selected is intentionally a small set, for several reasons. First, as
mentioned, the full set of metrics and baselines need to be selected by key participants.
Second, we anticipate that market share data for many mid- and low- impact measures will be
too sparse to show MT effects and not cost - effective to analyze. Third, we selected core
measures and metrics that would both be indicative of overall portfolio efforts. These
measures are also likely to be offered on a broad level by other utilities, providing a greater
base of sales and customer data that could be analyzed for far - reaching MT effects.
Therefore, for the Local Government Partnerships the following approach to quantitative
baseline and market transformation information is presented as follows.
The utilities recommend development of a baseline, and tracking the number of cities,
counties and government institutions that have plans for written energy efficiency provisions.
Such a metric relates directly to the Strategic Plan (Goal 12.3.4) in terms of measuring
progress towards 50% plans for sustainability.
In addition, we propose tracking community adoptions of new construction model reach
codes, both residential and nonresidential. This metric aligns with the Strategic Plan (Goal
12.3.1). In addition to being a direct indicator of support by local government partnerships,
community adoptions of model reach codes are of strategic interest to the CPUC. A
proliferation of dissimilar reach codes would confuse the market relative to building codes
and incentive programs. Model reach codes to be developed by Codes and Standards would
allow energy efficiency efforts across partners to be aligned with a clear target for each
climate zone. As discussed in the Local Government PIPS, the IOUs intend to work closely
with partners in establishing baseline code compliance levels and pushing for model reach
codes.
With this discussion in mind, IOUs propose the following metrics for this sector:
Baseline Metric
Metric A
Metric B
Baseline inventory of
Energy Efficiency
cities, counties and
Action Plans
govermment
institutions within the
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
b) Market Transformation Information
As stated above, market transformation draws heavily upon diffusion of innovation theory,
with the state of a market characterized by adoption rate plotted against time on the well -
known S- shaped diffusion curve. In practice, however, the diffusion curve of products may
span decades. Market share tracking studies conducted 3, 5 or even 10 years after the start of
an MT program may reveal only small market transformation effects. Therefore it is
problematic, if not impractical, to offer internal annual milestones towards market
transformation sectors and specific program activities.
As a consequence, it is not appropriate to offer more than broad and general projections. Any
targets provided in the following table are nothing more than best guesstimates, and are
subject to the effects of many factors and market forces outside the control of program
implementers.
Table 3
IOU territory that
2013
have adopted such
Baseline inventory of
energy planning
cities, counties and
documents as Energy
government
Action Plans, Climate
institutions within the
Improvement over
Action Plans and
IOU territory that have
baseline, over time
Sustainability Plans,
adopted such energy
and General Plans
planning documents as
with energy or climate
Energy Action Plans,
elements.
Climate Action Plans
In coordination with
Codes and Standards,
develop a baseline
Model Reach Codes
inventory of cities
and counties within
the IOU territory
with adopted model
reach codes
b) Market Transformation Information
As stated above, market transformation draws heavily upon diffusion of innovation theory,
with the state of a market characterized by adoption rate plotted against time on the well -
known S- shaped diffusion curve. In practice, however, the diffusion curve of products may
span decades. Market share tracking studies conducted 3, 5 or even 10 years after the start of
an MT program may reveal only small market transformation effects. Therefore it is
problematic, if not impractical, to offer internal annual milestones towards market
transformation sectors and specific program activities.
As a consequence, it is not appropriate to offer more than broad and general projections. Any
targets provided in the following table are nothing more than best guesstimates, and are
subject to the effects of many factors and market forces outside the control of program
implementers.
Table 3
Internal Market Transformation
Planning Estimates
2013
2014
Baseline inventory of
cities, counties and
government
institutions within the
Improvement over
Improvement over
IOU territory that have
baseline, over time
baseline, over time
adopted such energy
planning documents as
Energy Action Plans,
Climate Action Plans
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
and Sustainability
Program Target by
2013
Program Target by
2014
Plans, and General
N/A
N/A
Plans with energy or
N/A
N/A
climate elements.
N/A
N/A
In coordination with
N/A
N/A
Codes and Standards,
energy use in municipal facilities. In line with
develop a baseline
the Strategic Plan, the 2013 - 2014program
inventory of cities and
Improvement over
Improvement over
counties within the
baseline, over time
baseline, over time
IOU territory with
adopted model reach
codes
c) Program Design to Overcome Barriers:
Refer to individual partnership PIP section.
d) Quantitative Program Objectives:
Table 4
Program /Element
Program Target by
2013
Program Target by
2014
Target 41
N/A
N/A
Target #2
N/A
N/A
Target #3
N/A
N/A
Target #4
N/A
N/A
Refer to individual partnership PIP section.
6 - Other Program Element Attributes- Element A - Government Facilities
Other Program Element Attributes
Government Facilities
a) Best Practices: Describe why program
The approach to Local Government Facilities
element approach constitutes "best practice"
constitutes a best practice because it
or reflects "lessons learned" in market
incorporates the lessons learned from past
strategies, program design and /or
program cycles. SoCalGas has seen that, as
implementation techniques, or past
local governments become champions for
experience. Provide references where
energy efficiency in their communities, there is
available.
an increased focus on leading by reducing
energy use in municipal facilities. In line with
the Strategic Plan, the 2013 - 2014program
cycle will pave the path for a 20% reduction
below 2003 levels by 2015 and 20% below
levels by 2020.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Other Program Element Attributes
b) Innovation: Describe any unique or
imnovative aspects of program element not
previously discussed. Why is this innovative?
c) Interagency Coordination: Describe any
interagency coordination with the ARB, CEC
on PIER or Codes and Standards; non - utility
market initiatives; energy efficiency market
forces, opportunities and trends; and timeline
by which market segment will be
"transformed" or other aspects of the
program.
d) Integrated/coordinated Demand Side
Management: Describe how program will
achieve integrated or coordinated delivery of
all DSM options, as well as ESAP and WET.
(If this is an integral part of the program
element and fully covered under 44 note that
here.) Describe in detail how program will
achieve integrated or coordinated delivery of
DSM options (energy efficiency, demand
Government Facilities
The Government Facilities program element
incorporates innovative aspects of program
design, as discussed above. These include
benchmarking, community finance, and framing
the facilities work within a climate action
framework. Government Partnerships have used
innovative solutions to address barriers. In using
benchmarking technology and other technical
assistance, Government Partnerships plan to
prioritize the facilities that are best suited for
retrofits. Additionally, each partnership will
work to address potential barriers by sharing
solutions and best practices. The Partnerships
program will explore options for addressing
financial barriers (e.g., support for California
Energy Commission (CEC) loans and other
funding opportunities) and support individual
Partners that want to pilot new approaches, such
earmarking energy savings in a separate fund to
ensure that savings do not go back into the
general fund.
The Government Partnerships program will
foster coordination in relation to government
facilities efficiency, encouraging LGPs to make
use of coordination resources including:
o Participate in the CEC loan program for
governments.
o CEC's Public Interest Energy Research
(PIER) program
o "EPA Energy Star Low Carbon IT
Campaign Ally" with their power
management savings program.
o Work with the ARB as well as other
agencies to co- market materials, co-
brand programs, etc.
Partnerships will achieve coordinated delivery
of DSM options. Some LGPs will achieve
integration of all elements, while others will
only integrate a few. The integrated elements
will include:
• Integrated energy audits will be offered
to government facilities that show
savings potential and are willing to
commit to the additional time and
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Other Program Element Attributes
response, and onsite generation) where
applicable including integrated program
design and delivery, shared budgets, program
evaluation, and incentive mechanisms that
promote greater integration of DSM
resources. Provide a complete description for
all the technologies, including integration
supporting technologies that will be included
in the program. If the program does not
include all DSM options as noted above,
briefly provide an explanation for a more
limited subset of DSM technologies. Utilize
Attachment 5A to highlight any shared or
leveraged budget categories and amounts
(admin, incentives, ME &O, and other
applicable categories).
e) Integration across resource types (energy,
water, air quality, etc): If program aims to
integrate across resources types, provide
rationale and general approach. (If this is an
integral part of the program element and fully
covered render #4 note that here.)
f) Pilots: Describe any pilot projects that are
part of this program (If this was fully covered
under 44, note that here.)
Government Facilities
financial investments. Standard energy
efficiency audits will be offered to most
program participants.
Emerging Technologies and CEC -PIER
collaboration is expected to include pilot
projects and market acceleration
assistance for market -ready products in
the general categories of day lighting,
lighting, HVAC, controls, and building
envelope improvements.
Commissioning and retro- commissioning
services will be continued to segment
customers.
Demand response opportunities will be
targeted in the larger facilities,
particularly as part of monitoring -based
retro - commissioning efforts where the
controls to facilitate demand response
efforts would be installed.
Coordination with ESAP to provide
services to middle- income ( "just above
ESAP ") customers.
Government Partnerships will encourage
conversations with other resource agencies
including water, air quality and transportation
authorities. The partnerships will enable
individual LGPs to coordinate with other
resource programs, such as water, waste, in
achieving efficiencies in government facilities.
may address government
facility efficiency. Smaller pilots may be
implemented by individual LGPs as part of their
partnership activity. The Government
partnership team intends to do an assessment of
government facilities and may pilot new
approaches as a result of this assessment.
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Government Facilities
g) EM &V: Describe any process evaluation or
A process evaluation will be conducted by a
other evaluation efforts that will be
third party evaluator. The evaluation will assess
undertaken by the utility to determine if the
communication and coordination effectiveness
program is meeting its goals and objectives.
between partners as well as satisfaction with the
Include the evaluation timeframe and brief
service and increased awareness of energy
description of scope, as well as a summary of
efficiency opportunities. A combination of
specific methodologies, if already developed.
interviews and focus groups will likely be used
If not developed, indicate the process for
to collect data. The evaluation is expected to
developing them. Include reference to
build upon results found in the recently
tracking databases that will be used for
completed process evaluation for PY2006 to
evaluation purposes.
2008.
Element B - Strategic Plan Support
4 — Program Element Description and Implementation — Element B - Strategic Plan Support
B. Strate is Plan Support
B1 - Code Compliance
B2 - Reach Code Support
B3 - Guiding Document Support
B4 - Financing for the Community
B5 - Peer to Peer Support
Overview
The Strategic Plan Support element will be implemented primarily through various strategies
described in the Menu of Local Government Strategies for the California Long -Term Energy
Efficiency Strategic Plan. The ultimate goal for local governments in the Strategic Plan is to
embed and institutionalize energy efficiency in their policies, programs and processes.
Individual LGPs will also play an important role in furthering the strategic plan. This section (413
— 613) describes the standard overview, rationale, outcomes, and barriers associated with an
individual LGPs implementation of the Strategic Plan support element. If an individual LGP has
a different or targeted approach to Government Facilities, that LGP's individual PIP will contain
additional information.
It is important to note that individual Partners vary widely in terms of how appropriate and /or
ready each Partner is to undertake activities related to supporting the Strategic Plan. The
functions for Strategic Plan support are quite distinct (from codes to policy to finance). Given the
diversity of entities serving as the individual LGP, some Partners can accommodate all of the
distinct roles required for Strategic Plan support while others cannot.
The partners that directly represent a government entity will have different responsibilities and
capabilities than those partners that represent a regional group. For example, governments are
appropriate entities to enact policies including reach codes, GHG targets, and general plan
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updates, but regional groups are better positioned to perform broader functions such as
developing regional plans. In cases where the individual Partner does not function as a leader for
some or all of the Strategic Plan initiatives (codes, climate plans, financing, and peer support),
the Partner can often still play a supporting role.
Partners exhibit varying readiness to engage in Strategic Plan activity. Some partners have very
limited staff and budgets and may be engaging in energy efficiency and sustainability issues for
the first time. Other partners have been working on these issues for several years and are among
the leading municipalities in the country in their sustainability efforts. Therefore, the approach
to achieve Strategic Plan initiatives will need to be tailored to suit the individual needs and
capabilities of each Partner.
Local Government Partnerships will also implement, to varying degrees, aspects of the Strategic
Plan Support element. The degree will depend on how far along the energy efficiency learning
curve the partnership is. The Strategic Plan activities focus on long term change that will result
in permanent, sustainable energy savings, and that draw on the unique capabilities of local
governments, otherwise cannot be performed by other entities. This work should occur across
departments so that energy efficiency practices become business as usual in planning, building,
finance departments, public policy development and other functions of the local government
agency.
The following section catalogs approaches and techniques that LGPs may choose to utilize to
make constructive use of local government policies and services to promote community
sustainability.
Bl - Code Compliance
The Code Compliance sub - element will be implemented primarily through the Codes and
Standards program, as described in the Codes and Standards PIP. Some individual LGPs will
take action related to code compliance by engaging in a range of activities that will be
coordinated with the Codes and Standards program. LGP Code Compliance activities may
include training local government staff that is charged with code compliance in coordination
with SoCalGas Codes and Standards program or through training and education classes. LGP
activity may also include developing and implementing certification programs for local
inspectors and contractors. LGPs may assist with marketing in coordination with SoCalGas and
statewide marketing activities, including advertising training opportunities to relevant trades,
raising awareness of current codes among business and residential customers and encouraging
compliance. Local Governments often have access to constituents through existing relationships
and can use those routes to enhance or complement other energy efficiency marketing activities.
Please refer to the Codes and Standards PIP for further information.
B2 - Reach Code Support
The Reach Code Support sub- element will be implemented primarily through the Codes and
Standards program. Some individual Partnerships may choose to include Reach Code activities
to promote local codes that exceed Title 24 requirements. Again, all reach code support activity
will be coordinated with the Codes and Standards program. Partnerships that include Reach
Code activities could perform activities that range from training local government staff regarding
adoption and implementation of model reach codes to establishing expedited permitting and
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entitlement approval processes, fee structures and other incentives for green buildings and other
above -code developments. Examples could include green building standards for new
construction and retrofits /retro - commissioning or carbon offset reduction programs that exceed
Title 24. SoCalGas will provide training through its Education and Training program. LGPs
may attend training and /or market the training to relevant trades, in coordination with utility and
statewide marketing activities.
Please refer to the Codes and Standards PIP for further information.
133- Guiding Document Support
This program element will help government's complete GHG emissions inventories and climate
action plans in accordance with the process developed by ICLEI and help develop guiding
documents that effectively and methodically reduce community energy consumption and GHG
emissions. Those partnerships that include this program element could perform activities that
range from quantifying a municipality's baseline energy use, to developing a climate action plan
to reduce energy use to developing policies to be incorporated into a general plan.
Those partners who have not yet developed their baseline energy use could include activities to
inventory their municipal operations and community GHG emissions that would support
strategic planning to increase use of SoCalGas energy efficiency, demand response, renewables,
and other applicable programs. Advanced Partnerships and the individual Partners with a more
regional focus could develop local policy documents that could include energy elements in
general plans, energy efficiency recommendations for new developments, energy - efficient
equipment purchasing guidelines, community climate action plans, and analyses for energy
conservation codes and ordinances targeting the private sector.
Advanced Partnerships and the individual Partners with a more regional focus may assist
municipalities within their jurisdictions with energy policies. For example, they may develop
Community Energy Policy Packages for adopting and implementing a local energy initiative.
This package may include draft policy language, a recommendation for legal authority
(ordinance versus policy document versus administrative mandate); guidance and checklist for
successful implementation (including assigning policy implementation to a sympathetic city
department); staff report guidelines and discussion on implementations issues (e.g., how to frame
objectives, scope, triggering mechanisms, requirements, and enforcement strategies). These
services may also include technical assistance for agencies pursuing adoption of local policies,
and may include estimating local savings impacts, providing supporting calculations or analysis
of staff reports, etc.
B4 - Financing for the Community
Some individual LGPs will implement some aspect of financing as part of their activity. A new
program element will be offered to Partners to help governments explore financing opportunities
such as low- interest loans through the California Energy Commission (CEC). The CEC's Energy
Efficiency Financing Program provides financing for schools, hospitals and local governments
through low- interest loans for feasibility studies and the installation of energy- saving measures.
For those partners who include this program element, the Partnership could provide project
financial analysis assistance to quantify energy efficiency project economics in terms understood
by local government decision makers, and could assist facility engineering staff in presenting
projects for approval. Assistance may include providing life cycle cost analysis and illustrating
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how energy efficiency investments can be structured to pay for themselves, while also freeing up
resources through lower future facility operating costs.
B5 — Peer to Peer Support
Individual LGPs may participate in peer sharing forums and the quarterly partner networking
events set up by SoCalGas. Individual LGPs may also set up their own networks for the
governments within their area. LGPs provide an opportunity to raise awareness among local
government staff and create connections across departments to lay the groundwork for the long-
term change that is laid out in the strategic plan. Peer to peer exchange is one method for
building local government energy efficiency knowledge and capability. LGP peer to peer
exchange also may benefit utility and third party implementation staff where local government
staff provides information about their local community needs and the inner workings of their
local government.
Information sharing can occur within each Partnership (across Partnership members), across
local govermnent staff and across Partnerships. Peer to peer support will help local governments
develop energy efficiency policy and program initiatives to promote energy efficiency within the
local government community. Those Partners who choose to include this element in their
program could utilize a combination of peer forums, local government - focused workshops, and a
web based clearinghouse that will provide specific energy efficiency information and resources.
Support networks would encompass those already working in energy efficiency or related areas
such as environment, climate or sustainability and those whose primary function is not directly
related to energy efficiency such as building inspectors, maintenance staff and city council
members.
The expected outcomes are the exchange of information within, across and from Partnerships to
broader local government staff. The range of expected impacts is consistent with elements of the
strategic plan and includes:
• Increased knowledge and awareness of energy efficiency,
• Changes in local government behaviors related to energy efficiency,
• Increased ability to implement energy efficiency within local govermnent, and
• Creation of linkages across local government staff and added resources that maximize the
government's ability to develop goals and implement strategies around energy efficiency
and carbon reduction.
Non - Incentive Services
The functions and activities discussed in this section are all non - incentive services.
Target Audience
The Partnership program will assist local govermnents, quasi-governments, nonprofits focused
on the public sector, and their agents in achieving objectives of the Strategic Plan. Each Partner's
actions in this arena will benefit their respective constituents, including but not limited to
residents, inspectors, contractors, small businesses, and other local governments.
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Implementation
For each of the five Strategic Plan Support elements described, implementation will vary across
the LGPs. For detailed information about implementation, please see the Individual LGP PIPS
and Supplemental Filing —Local Government Partnership Strategic Plan Proposals in Compliance
with D.09 -09 -047 (Advice Letter 2445 -E -A). In general, each Partnership contract will identify
which strategic plan program elements will be included in the partnership program and the
associated budget. The utility and partner responsibilities will be defined for each program
element included in the partnership.
5 - Program Element Rationale and Expected Outcome — Element B - Strategic Plan Support
a) Quantitative Baseline and Market Transformation Information
Market Transformation (MT) metrics proposed in Tables 3 and 4 are preliminary. The
proposed metrics are meant to initiate a collaborative effort to elaborate meaningful metrics
that will provide overall indicators of how markets as a whole are evolving. MT metrics
should neither be used for short-term analyses nor for specific program analyses; rather,
should focus on broad market segments.
Market transformation is embraced as an ideal end state resulting from the collective efforts
of the energy efficiency field, but differing understandings of both the MT process and the
successful end state have not yet converged. The CPUC defines the end state of MT as
"Long- lasting sustainable changes in the structure or functioning of a market achieved by
reducing barriers to the adoption of energy efficiency measures to the point where further
publicly - funded intervention is no longer appropriate in that specific market." 16 The Strategic
Plan recognizes that process of transformation is harder to define than its end state, and that
new programs are needed to support the continuous transformation of markets around
successive generations of new technologies 17.
Market transformation programs differ from resource acquisition programs on 1) objectives,
2) geographical and 3) temporal dimensions, 4) baselines, 5) performance metrics, 6)
program delivery mechanisms, 7) target populations, 8) attribution of causal relationships,
and 9) market structures18. Markets are social institutions19, and transformation requires the
coordinated effort of many stakeholders at the national level, directed to not immediate
energy savings but rather to intermediary steps such as changing behavior, attitudes, and
market supply chains 20 as well as changes to codes and standards. Resource acquisition
programs rely upon the use of financial incentives, but concerns have been raised that these
incentives distort true market price signals and may directly counter market transformation
16 California Public Utilities Commission Decision, D.98 -04 -063, Appendix A.
"Cali forma Public Utilities Commission (2008) California Long Term Energy Efficiency Strategic Plan, p. 5. Available at
http:// www.californiaenergyeft'lciency .coin /dots /EEStrategiePlan.pdf
"Peloza, J., and York, D. (1999). "Market Transformation: A Guide for Program Developers." Energy Center of Wisconsin.
Available at: http: / /www,cew.ot,g /eewresults /189 -I.pdf
19 Blumstein, C., Goldstone, S., & L.utzenhiser, L. (2001) "From technology transfer to market transformation'. Proceedings of
the European Council for an Energy Efficient Economy Summer Study. Available at
http: / /www.eceee,ot*g/conference proceedings/eceee /2001 /Panel_2/p2 7 /Paper/
21 Scheid, F. D., Fields, A., Skumatz, L., Feldman, S., Goldberg, M., Keating, K., Peters, J. (2001) A Frameworkfor Planning
and Assessing Publicly Funded Energy Efficiency. p. 6 -4. Available at www.calmac, org.
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progress21. According to York 22, "Market transformation is not likely to be achieved without
significant, permanent increases in energy prices. From an economic perspective, there are 3
ways to achieve market transformation: (1) fundamental changes in behavior, (2) provide
proper price signals, and (3) permanent subsidy."
The question of what constitutes successful transformation is controversial because of a
Catch -22: Market transformation is deemed successful when the changed market is self -
sustaining, but that determination cannot be made until after program interventions are
ended. Often, however, the need for immediate energy and demand savings or immediate
carbon- emissions reductions will mean that program interventions may need to continue,
which would interfere with the evaluation of whether MT is self - sustaining. Market
transformation success has also been defined in terms of higher sales of efficient measures
than would have otherwise occurred against a baseline absent of program interventions. The
real world, however, provides no such control condition. Evaluators must estimate these
baselines from quantitative factors such as past market sales that may be sparse and /or
inaccurate - particularly for new products. Evaluations must also defer to expert judgments
on what these baselines may have been as well as on the degree of successful market
transformation 23. Due to the subjective nature of these judgments, it is imperative that
baselines as well as milestone MT targets be determined and agreed upon through
collaborative discussion by all stakeholders, and these targets may need periodic revision as
deemed necessary by changing context.
Market transformation draws heavily upon diffusion of innovation theory 24, with the state of
a market usually characterized by adoption rate plotted against time on the well -known S-
shaped diffusion curve. In practice, however, the diffusion curve of products may span
decades 25. Market share tracking studies conducted 3, 5 or even 10 years after the start of an
MT program may reveal only small market transformation effects 26. The ability to make
causal connections between these market transformation effects and any particular program's
activities fades with time, as markets continually change and other influences come into play.
These challenges mentioned above are in reference to programs that were specifically
designed to achieve market transformation; and these challenges are only compounded for
programs that were primarily designed to achieve energy and demand savings. However,
since the inception of market transformation programs almost two decades ago, many lessons
have been learned about what the characteristics of successful MT programs are. First and
foremost, they need to be designed specifically to address market transformation. "The main
reason that (most) programs do not accomplish lasting market effects is because they are not
designed specifically to address this goal (often because of regulatory policy directions given
" Gibbs, M, and Townsend, J. (2000). The Role of Rebates in Market Transformation:
Friend or Foe. In Proceedings from 2000 Summer Study on Energy Efficiency in
Buildings.
12 York, D., (1999). "A Discussion and Critique of Market Transformation ", Energy Center of Wisconsin. Available at
http: / /www. eew,org /ecwrestilts/ 186 - I.pdf.
2 Nadel, S., Thorne, .J., Sachs, Ii, Prindle, B., and Elliot, R.N. (2003). "Market Transformation: Substantial Progress from a
Decade of Work." American Council for an Energy - Efficient Economy, Report Number A036. Available at:
http: / /www,aceee.org /pubs /a036full.pdf
24 Rogers (1995) Diffusion of Innovations, 5 °i Ed.
2' Example in bottom chart of this graphic from NYTimes:
http : / /www.nytimes.com /imagepages/ 2008 /02/10/ opinion /1 Oop.graphic.ready.html
2fi Sebold et at (2001) p. 6 -5,
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to program designers. )27" The Strategic Plan recognizes that regulatory policies are not yet in
place to support the success of market transformation efforts 28, but also reflects the CPUC's
directive to design energy efficiency programs that can lay the groundwork for either market
transformation success or for codes and standards changes.
Above all else, the hallmark of a successful market transformation program is in the
coordination of efforts across many stakeholders. The most successful MT programs have
involved multiple organizations, providing overlapping market interventions 29. The Strategic
Plan calls for coordination and collaboration throughout, and in that spirit the utilities look
forward to working with the CPUC and all stakeholders to help achieve market
transformation while meeting all the immediate energy, demand, and environmental needs.
Drawing upon lessons learned from past MT efforts, the Energy Center of Wisconsin's guide
for MT program developers 30 suggests that the first step is not to set end -point definitions,
progress metrics or goals. Rather, the first steps include forming a collaborative of key
participants. As the Strategic Plan suggests, these may include municipal utilities, local
governments, industry and business leaders, and consumers. Then, with the collective
expertise of the collaborative, we can define markets, characterize markets, measure
baselines with better access to historical data, and define objectives, design strategies and
tactics, implement and then evaluate programs. The collaborative will also provide insights
that will set our collective expectations for the size of market effects we can expect, relative
to the amount of resources we can devote to MT. No one organization in the collaborative
will have all the requisite information and expertise for this huge effort. This truly needs to
be a collaborative approach from the start.
The metrics and baselines described below in Tables 2 and 3 are presented for the purposes
of starting the much - needed discussion between all key participants. These are suggestions,
intended to allow key participants to pilot -test processes for establishing baseline metrics,
tracking market transformation progress, and for refining evaluation tools. Early trial of these
evaluation metrics will reveal any gaps in data tracking so that we may refine our processes
before frill -scale market transformation evaluations take place.
The set of metrics we selected is intentionally a small set, for several reasons. First, as
mentioned, the full set of metrics and baselines need to be selected by key participants.
Second, we anticipate that market share data for many mid- and low- impact measures will be
too sparse to show MT effects and not cost - effective to analyze. Third, we selected core
measures and metrics that would both be indicative of overall portfolio efforts. These
measures are also likely to be offered on a broad level by other utilities, providing a greater
base of sales and customer data that could be analyzed for far- reaching MT effects.
Therefore, for the Local Government Partnerships the following approach to quantitative
baseline and market transformation information is presented as follows.
The utilities recommend development of a baseline, and tracking the number of cities,
counties and government institutions that have plans for written energy efficiency provisions.
27 Peters, LS., MaskB., Ignelzi, P., Megdal, L.M. (1998). Market Effects Summary Study Final Report: Volume 1. "Available at
http: / /calmac.org/ publications /I 9981215CAD0001 ME.PDE
ze CPUC (2008) Strategic Plan, p. 5.
29 Nadel, Thorne, Saehes, Prindle & Elliot (2003).
30 Peloza & York, (1999).
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Such a metric relates directly to the Strategic Plan (Goal 12.3.4) in terms of measuring
progress towards 50% plans for sustainability.
In addition, we propose tracking community adoptions of new construction model reach
codes, both residential and nonresidential. This metric aligns with the Strategic Plan (Goal
12.3.1). In addition to being a direct indicator of support by local government partnerships,
community adoptions of model reach codes are of strategic interest to the CPUC. A
proliferation of dissimilar reach codes would confuse the market relative to building codes
and incentive programs. Model reach codes to be developed by Codes and Standards would
allow energy efficiency efforts across partners to be aligned with a clear target for each
climate zone. As discussed in the Local Government PIPS, the IOUs intend to work closely
with partners in establishing baseline code compliance levels and pushing for model reach
codes.
With this discussion in mind, IOUs propose the following metrics for this sector:
b) Market Transformation Information
As stated above, market transformation draws heavily upon diffusion of innovation theory,
with the state of a market characterized by adoption rate plotted against time on the well -
known S- shaped diffusion curve. In practice, however, the diffusion curve of products may
Baseline Metric
Metric A
Metric B
Baseline inventory of
cities, counties and
government
institutions within the
IOU territory that
have adopted such
Energy Efficiency
energy planning
N/A
Action Plans
documents as Energy
Action Plans, Climate
Action Plans and
Sustainability Plans,
and General Plans
with energy or climate
elements.
In coordination with
Codes and Standards,
develop a baseline
Model Reach Codes
inventory of cities
and counties within
the IOU territory
with adopted model
reach codes
b) Market Transformation Information
As stated above, market transformation draws heavily upon diffusion of innovation theory,
with the state of a market characterized by adoption rate plotted against time on the well -
known S- shaped diffusion curve. In practice, however, the diffusion curve of products may
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span decades. Market share tracking studies conducted 3, 5 or even 10 years after the start of
an MT program may reveal only small market transformation effects. Therefore it is
problematic, if not impractical, to offer internal annual milestones towards market
transformation sectors and specific program activities.
As a consequence, it is not appropriate to offer more than broad and general projections. Any
targets provided in the following table are nothing more than best guesstimates, and are
subject to the effects of many factors and market forces outside the control of program
implementers.
c) Program Design to Overcome Barriers:
Refer to individual partnership PIP section.
d) Quantitative Program Objectives:
Program/Element
Internal Market Transformation
Program Target by
2014
Planning Estimates
N/A
2013
2014
Baseline inventory of
N/A
cities, counties and
government
institutions within the
IOU territory that have
adopted such energy
planning documents as
Improvement over
Improvement over
Energy Action Plans,
baseline, over time
baseline, over time
Climate Action Plans
and Sustainability
Plans, and General
Plans with energy or
climate elements.
In coordination with
Codes and Standards,
develop a baseline
inventory of cities and
Improvement over
Improvement over
counties within the
baseline, over time
baseline, over time
IOU territory with
adopted model reach
codes
c) Program Design to Overcome Barriers:
Refer to individual partnership PIP section.
d) Quantitative Program Objectives:
Program/Element
Program Target by
2013
Program Target by
2014
Target 91
N/A
N/A
Target #2
N/A
N/A
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Target #3
N/A
N/A
Target #4
N/A
N/A
Refer to individual partnership PIP section.
6 - Other Program Element Attributes — Element B - Strategic Plan Support
a) Best Practices
SoCalGas approach to Strategic Plan Support is innovative and reflects lessons learned because
SoCalGas has observed that multiple actors provide governments with long -term GHG reduction
and energy reduction strategies. SoCalGas has learned from previous programs that it is more
important for governments to have access to tools and technical assistance to become informed
energy actors rather than directly performing all functions themselves.
b) Innovation
The Strategic Plan Support element is inherently innovative since these elements have not been
a part of previous Government Partnership program.
c) Interagency Coordination
The Strategic Plan Support element affords many opportunities for CEC, ARB and PIER
coordination especially as communities look towards AB32 implementation and Title 24
compliance and development of climate action plans. Government Partnerships who include
Strategic Plan Support elements in their program will look to align the goals of their respective
communities around the goals of the Strategic Plan through education and outreach campaigns,
peer -to -peer support and by providing technical assistance around compliance issues with these
agencies.
d) Integrated /coordinated Demand Side Management
The Strategic Plan Support program element will achieve coordination of demand side
management, low income efficiency, and workforce training. Peer to peer support will serve as
a catalyst for integration by providing a platform for knowledge sharing. In this way, there is an
opportunity to expose all peer to peer participants to all utility program offerings in an
integrated fashion.
e) Integration across resource types (energy, water, air quality, etc)
This program element integrates other resources, especially regarding guiding documents,
which necessarily should include resource types such as waste, land use, water. While
government Partnerships are designed to focus on energy efficiency, SoCalGas can encourage
partnerships to access other resources and can also emphasize when energy programs have
incidental benefits to other resources. See individual PIPS for more specific information.
f) Pilots
Individual LGPs may choose to implement pilots related to this element. See individual PIPs for
more specific information.
g) EM &V
A process evaluation will be conducted by a third party evaluator. The evaluation will assess
communication and coordination effectiveness between partners as well as satisfaction with the
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service and increased awareness of energy efficiency opportunities. A combination of
interviews and focus groups will likely be used to collect data. The evaluation is expected to
build upon results found in the recently completed process evaluation for PY2006 to 2008.
Element C - Core Program Coordination
4 — Program Element Description and Implementation — Element C - Core Program
Coordination
C. Core Pro ram Coordination
C1- Outreach Education
C2 - Third Party Program Coordination
C3 - Technical Assistance
Overview
The Core Program Coordination element will be implemented to some degree by all of the
unique individual Local Government Partners (LGPs). This section (4C — 6C) describes the
standard overview, rationale, outcomes, and barriers associated with the Core Program
Coordination element by an LGP. If an individual LGP has a distinctive approach to Core
Program Coordination, that LGPs individual PIP will contain additional information.
Coordination with Core programs is important to the effectiveness of each individual LGP. A
key to SoCalGas coordination effort is its market segment planning approach. This means that
LGPs will be coordinated with all other energy efficiency portfolio efforts to reach agricultural,
commercial, industrial, residential and small business customers.
In addition, LPGs will promote the EUC in 2013 -14 through collaboration with local EUC
stakeholders to support marketing and outreach. LGPs will continue to coordinate with local
regional efforts such as the County of Santa Barbara, County of Los Angeles, and other local
governments engaged in regional efforts that support EUC. LGPs will continue work which has
been in progress during 2010 -12 doing public workshops to promote EUC to the community as
well as supporting recruitment of contractors.
In addition, LGPs coordinate with each other, with SoCalGas, and with other implementers to
support energy efficiency programs across the SoCalGas portfolio, and particularly with respect
to outreach education for residential and small business customers, third party programs, and
technical assistance. By utilizing the outreach channels of the local government, these programs
target customers and fully canvas neighborhoods that may not be targeted by Core Programs.
LGPs that have close ties to Business Improvement Districts (BIDS) will coordinate marketing
outreach and education of Core Commercial Programs by:
1. Engaging BIDS through leveraging and working with LG Partners
2. Working with BIDS to reach out to small and medium businesses to deliver relevant
Training & Education and to funnel Core Program and /or Third Party Program
offerings.
3. Collaborating and leveraging all local and utility resources to deliver cost effective
and targeted EE measures
2013 -2014 Energy Efficiency Programs
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In a continued effort to insure that customers and energy efficiency opportunities are not
overlooked, LGPs will also have the opportunity to participate in a program to provide energy
efficiency to moderate income customers slightly above the ESAP guideline or to customers who
are unable to produce the necessary ESAP documentation.
Because of their close ties to the community, individual LGPs may identify opportunities to
serve customer energy needs through integrated demand side management products including
energy efficiency, demand response, low income programs, and codes and standards assistance
as well as other utility programs including distributed generation. Such coordination provides
customers with comprehensive solutions and minimizes overlap of effort and service. Where the
LGP identifies a need that they do not currently service, they can refer participants to programs.
The Partnership will provide the participant with contact information for the relevant programs
and assistance as required. If program overlap is determined to exist, the Partnership will notify
SoCalGas of the program(s) involved and discuss and coordinate efforts so as not to duplicate
services and compete for customers.
In addition, LGPs can coordinate with and leverage other sources of funding to increase the
impact of SoCalGas offerings and include programs provided by other agencies such as the CEC,
ARB and other state and federal agencies.
In addition to outreach for energy efficiency opportunities, LGPs are an important delivery
channel for integrated approaches and emerging technologies. As new approaches of integration
and emerging technologies are available, the LGPs will serve as a channel for providing the
appropriate outreach and education to the community.
CI - Outreach and Education
LGPs will provide education and outreach to inform their customers about comprehensive
energy saving opportunities and best practices. A key focus for support from LGPs will be EUC.
All of the outreach will be coordinated with SoCalGas marketing efforts and statewide marketing
energy efficiency marketing initiatives.
As part of the coordination of Training and Education, the LGPs will leverage trainings at
SoCalGas Energy Resource Center, SCE's CTAC and other resources.
C2 - Third Party Program Coordination
LGPs will coordinate with Third Party direct install contractors and /or other core programs to
implement retrofits of existing government buildings and municipal facilities. The contracts will
be coordinated with the LGPs by establishing agreements between the contractors and the GPs
that specify which customers and in which geographic areas each contractor is eligible to serve.
Contractors will be selected to provide focus on targeted customers as well as specialization in
strategic technologies such as HVAC tune -ups and replacement projects.
C3 — Technical Assistance
Technical assistance is available to LGPs. Assistance many include but is not limited to audits,
engineering calculations, reports and inspections.
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Target Audience
Community level data will be analyzed to determine the areas with the largest potential based on
market potential studies and looking at previously served customers.
CI - Outreach and Education
The primary audience for outreach and education includes the following:
• Local Government Partners
• Government and agency employees
• Community based organizations
• Energy Upgrade California — Whole Home Upgrade California Contractors
• SoCalGas customers
• Building engineers
C2 - Third Party Program Coordination
Individual LGPs will coordinate closely with the third parties providing the direct install
implementation. In addition, each individual LGP will be trained in the programs offered by the
third parties so that they may coordinate and/or refer customers to these programs. For example,
third party coordination may be appropriate for more specialized technologies or specific target
segments.
C3 — Technical Assistance
The target audience for technical assistance includes local government partners, SoCalGas
customers, and contractors.
Implementation
C1 - Outreach and Education
Objectives of the LGPs include leveraging marketing from existing core and statewide programs
to provide a consistent and cost effective approach. Because LGPs best understand the needs of
their community, the LGPs will tailor offerings to the community and implement programs
through community outreach.
LGPs will also work with local governments and quasi - governments to develop an education
curriculum and schedule that will engage their communities to advance energy efficiency and
sustainability. LGPs will coordinate and support efforts to promote EUC throughout territory
shared with SCE, and PG &E. Partnerships will leverage the resources of the SoCalGas Energy
Resource Center.
Some individual LGPs may develop training materials for adopting and implementing local
energy initiatives or may utilize such materials developed under the SEEC Program.
Partnerships will also develop workshop topics, schedule workshops in key locations, arrange for
workshop presenters, coordinate workshop materials, market workshops to local governments,
and facilitate workshops
C2 - Third Party Program Coordination
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LGPs using third party direct install programs will coordinate with third party direct install
contractors to determine which areas of the community should be the focus of the direct install
contractors marketing efforts. The direct install contracts will be coordinated with the LGPs by
establishing agreements between the contractors and the LGPs that specify which customers and
geographic areas each contractor is eligible to serve. This method provides a more orderly
approach to using the limited number of contractors to reach the widest population in the state in
a consistent manner. Each direct installation implementer will work with their assigned LGP to
develop a marketing strategy for their assigned LGP territory. Each LGP with Direct Install
element in their program will have a direct install budget that will augment the third party
contract funds. Each project implemented and coordinated within a LGP community will be
funded by the GP program and the associated savings will be allocated to the GP.
C3 — Technical Assistance
Technical assistance is available to LGPs to provide audits, engineering calculations, reports and
inspections. Additionally, partnerships will take a strategic market plan approach to address the
customers with the largest potential or the biggest need. These efforts will be conducted with
other third party and Core programs.
5 - Program Element Rationale and Expected Outcome — Element C Core Program
Coordination
a) Quantitative Baseline and Market Transformation Information
Market Transformation (MT) metrics proposed in Tables 3 and 4 are preliminary. The
proposed metrics are meant to initiate a collaborative effort to elaborate meaningful metrics
that will provide overall indicators of how markets as a whole are evolving. MT metrics
should neither be used for short-term analyses nor for specific program analyses; rather,
should focus on broad market segments.
Market transformation is embraced as an ideal end state resulting from the collective efforts
of the energy efficiency field, but differing understandings of both the MT process and the
successful end state have not yet converged. The CPUC defines the end state of MT as
"Long- lasting sustainable changes in the structure or functioning of a market achieved by
reducing barriers to the adoption of energy efficiency measures to the point where further
publicly - funded intervention is no longer appropriate in that specific market. "31 The Strategic
Plan recognizes that process of transformation is harder to define than its end state, and that
new programs are needed to support the continuous transformation of markets arotmd
successive generations of new technologies 32.
Market transformation programs differ from resource acquisition programs on 1) objectives,
2) geographical and 3) temporal dimensions, 4) baselines, 5) performance metrics, 6)
program delivery mechanisms, 7) target populations, 8) attribution of causal relationships,
and 9) market structures33. Markets are social institutions34, and transformation requires the
California Public Utilities Commission Decision, D.98 -04 -063, Appendix A.
California Public Utilities Commission (2008) California Long Terin Energy Efficiency Strategic Plan, p. 5. Available at
http: / /www.cal iforniaenergyefficiency,com /does /EEStrategiePlaapdf
" Peloza, J., and York, D. (1999). "Market Transformation: A Guide for Program Developers." Energy Center of Wisconsin.
Available at: http: / /www.ecw.org /ecwresults /189 -Lpdf
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
coordinated effort of many stakeholders at the national level, directed to not immediate
energy savings but rather to intermediary steps such as changing behavior, attitudes, and
market supply chains 35 as well as changes to codes and standards. Resource acquisition
programs rely upon the use of financial incentives, but concerns have been raised that these
incentives distort true market price signals and may directly counter market transformation
progress 36. According to York 37, "Market transformation is not likely to be achieved without
significant, permanent increases in energy prices. From an economic perspective, there are 3
ways to achieve market transformation: (1) fundamental changes in behavior, (2) provide
proper price signals, and (3) permanent subsidy."
The question of what constitutes successful transformation is controversial because of a
Catch -22: Market transformation is deemed successful when the changed market is self -
sustaining, but that determination cannot be made until after program interventions are
ended. Often, however, the need for immediate energy and demand savings or immediate
carbon- emissions reductions will mean that program interventions may need to continue,
which would interfere with the evaluation of whether MT is self- sustaining. Market
transformation success has also been defined in terms of higher sales of efficient measures
than would have otherwise occurred against a baseline absent of program interventions. The
real world, however, provides no such control condition. Evaluators must estimate these
baselines from quantitative factors such as past market sales that may be sparse and /or
inaccurate - particularly for new products. Evaluations must also defer to expert judgments
on what these baselines may have been as well as on the degree of successful market
transformation 38. Due to the subjective nature of these judgments, it is imperative that
baselines as well as milestone MT targets be determined and agreed upon through
collaborative discussion by all stakeholders, and these targets may need periodic revision as
deemed necessary by changing context.
Market transformation draws heavily upon diffusion of innovation theory 39, with the state of
a market usually characterized by adoption rate plotted against time on the well -known S-
shaped diffusion curve. In practice, however, the diffusion curve of products may span
decades40. Market share tracking studies conducted 3, 5 or even 10 years after the start of an
MT program may reveal only small market transformation effects 41. The ability to make
causal comlections between these market transformation effects and any particular program's
activities fades with time, as markets continually change and other influences come into play.
"BIumstein, C, Goldstone, S., & Lutzenhiser, L. (2001) "From technology transfer to market transformation ". Proceedings of
the European Council for an Energy Efficient Economy Sumner Study. Available at
hUp: / /www,ecece. org / conference _proceedings /eceee /2001[Panel 2/p2 7 /Paper/
" Sebold, F. D., Fields, A., Skumatz, L., Feldman, S, Goldberg, M, Keating, K, Peters, 1. (2001) A Frameworkfor Planning
and Assessing Publicly Funded Energy Efficiency. p. 6 -4. Available at www.calaiac.org.
" Gibbs, M, and Townsend, J. (2000). The Role of Rebates in Market Transformation:
Friend or Foe. In Proceedings from 2000 Summer Study on Energy Efficiency in
Buildings.
" York, D., (1999). "A Discussion and Critique of Market Transformation', Energy Center of Wisconsin. Available at
http: / /www.ecw,org /eewresults /k 86- l.pdf.
"Nadel, S., Thorne, J., Sachs, H., Prindle, B., and Elliot, R.N. (2003). "Market Transformation: Substantial Progress from a
Decade of Work." American Council for an Energy - Efficient Economy, Report Number A036. Available at:
http://www,aceee.org/pubs/a036fiill.pdf
" Rogers (1995) Diffusion of Innovations, 5 °i Ed.
ao Example in bottom chat of this graphic from NYTimes:
http://www.nylimes.com/imagepages/2008/02/1 O/opinion/lOop.gi aph ie.ready.html
Al Scheid et at (2001) p. 6 -5,
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
These challenges mentioned above are in reference to programs that were specifically
designed to achieve market transformation; and these challenges are only compounded for
programs that were primarily designed to achieve energy and demand savings. However,
since the inception of market transformation programs almost two decades ago, many lessons
have been learned about what the characteristics of successful MT programs are. First and
foremost, they need to be designed specifically to address market transformation. "The main
reason that (most) programs do not accomplish lasting market effects is because they are not
designed specifically to address this goal (often because of regulatory policy directions given
to program designers .)42" The Strategic Plan recognizes that regulatory policies are not yet in
place to support the success of market transformation efforts 43, but also reflects the CPUC's
directive to design energy efficiency programs that can lay the groundwork for either market
transformation success or for codes and standards changes.
Above all else, the hallmark of a successful market transformation program is in the
coordination of efforts across many stakeholders. The most successful MT programs have
involved multiple organizations, providing overlapping market interventions 44. The Strategic
Plan calls for coordination and collaboration throughout, and in that spirit the utilities look
forward to working with the CPUC and all stakeholders to help achieve market
transformation while meeting all the immediate energy, demand, and environmental needs.
Drawing upon lessons learned from past MT efforts, the Energy Center of Wisconsin's guide
for MT program developers 45 suggests that the first step is not to set end -point definitions,
progress metrics or goals. Rather, the first steps include forming a collaborative of key
participants. As the Strategic Plan suggests, these may include municipal utilities, local
governments, industry and business leaders, and consumers. Then, with the collective
expertise of the collaborative, we can define markets, characterize markets, measure
baselines with better access to historical data, and define objectives, design strategies and
tactics, implement and then evaluate programs. The collaborative will also provide insights
that will set our collective expectations for the size of market effects we can expect, relative
to the amount of resources we can devote to MT. No one organization in the collaborative
will have all the requisite information and expertise for this huge effort. This truly needs to
be a collaborative approach from the start.
The metrics and baselines described below in Tables 2 and 3 are presented for the purposes
of starting the much - needed discussion between all key participants. These are suggestions,
intended to allow key participants to pilot -test processes for establishing baseline metrics,
tracking market transformation progress, and for refining evaluation tools. Early trial of these
evaluation metrics will reveal any gaps in data tracking so that we may refine our processes
before full -scale market transformation evaluations take place.
The set of metrics we selected is intentionally a small set, for several reasons. First, as
mentioned, the full set of metrics and baselines need to be selected by key participants.
Second, we anticipate that market share data for many mid- and low - impact measures will be
Q2 Peters, 7.S, Mast,B, Ignelzi, P., Megdal, L.M. (1998). ATarket Effects Summary Study Fi)zal Report: Volume 1. "Available at
http: / /calmac.org /publications /19981215CAD0001 ME.PDF.
CPUC (2008) Strategic Plan, p. 5.
44 Nadel, Thorne, Saehes, Prindle & Elliot (2003).
as Peloza & York, (1999).
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too sparse to show MT effects and not cost - effective to analyze. Third, we selected core
measures and metrics that would both be indicative of overall portfolio efforts. These
measures are also likely to be offered on a broad level by other utilities, providing a greater
base of sales and customer data that could be analyzed for far- reaching MT effects.
Therefore, for the Local Government Partnerships the following approach to quantitative
baseline and market transformation information is presented as follows.
The utilities recommend development of a baseline, and tracking the number of cities,
counties and government institutions that have plans for written energy efficiency provisions.
Such a metric relates directly to the Strategic Plan (Goal 12.3.4) in terms of measuring
progress towards 50% plans for sustainability.
In addition, we propose tracking conummity adoptions of new construction model reach
codes, both residential and nonresidential. This metric aligns with the Strategic Plan (Goal
12.3.1). In addition to being a direct indicator of support by local government partnerships,
community adoptions of model reach codes are of strategic interest to the CPUC. A
proliferation of dissimilar reach codes would confuse the market relative to building codes
and incentive programs. Model reach codes to be developed by Codes and Standards would
allow energy efficiency efforts across partners to be aligned with a clear target for each
climate zone. As discussed in the Local Government PIPS, the IOUs intend to work closely
with partners in establishing baseline code compliance levels and pushing for model reach
codes.
With this discussion in mind, IOUs propose the following metrics for this sector:
Baseline Metric
Metric A
Metric B
Baseline inventory of
cities, counties and
government
institutions within the
IOU territory that
have adopted such
Energy Efficiency
energy planning
N/A
Action Plans
documents as Energy
Action Plans, Climate
Action Plans and
Sustainability Plains,
and General Plans
with energy or climate
elements.
In coordination with
Codes and Standards,
Model Reach Codes
develop a baseline
inventory of cities
and counties within
the IOU territory
2013 -2014 Energy Efficiency Programs
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Program Implementation Plan
with adopted model
reach codes
e) Market Transformation Information
As stated above, market transformation draws heavily upon diffusion of innovation theory,
with the state of a market characterized by adoption rate plotted against time on the well -
known S- shaped diffusion carve, In practice, however, the diffusion curve of products may
span decades. Market share tracking studies conducted 3, 5 or even 10 years after the start of
an MT program may reveal only small market transformation effects. Therefore it is
problematic, if not impractical, to offer internal annual milestones towards market
transformation sectors and specific program activities.
As a consequence, it is not appropriate to offer more than broad and general projections. Any
targets provided in the following table are nothing more than best guesstimates, and are
subject to the effects of many factors and market forces outside the control of program
implementers.
a) Program Design to Overcome Barriers:
Refer to individual partnership PIP section.
b) Quantitative Program Objectives:
Internal Market Transformation
Planning Estimates
2013
2014
Baseline inventory of
cities, counties and
government
institutions within the
IOU territory that have
adopted such energy
planning documents as
Improvement over
Improvement over
Energy Action Plans,
baseline, over time
baseline, over time
Climate Action Plans
and Sustainability
Plans, and General
Plans with energy or
climate elements.
In coordination with
Codes and Standards,
develop a baseline
inventory of cities and
Improvement over
Improvement over
counties within the
baseline, over time
baseline, over time
IOU territory with
adopted model reach
codes
a) Program Design to Overcome Barriers:
Refer to individual partnership PIP section.
b) Quantitative Program Objectives:
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Program Implementation Plan
Program /Element
Program Target by
2013
Program Target by
2014
Target #1
N/A
N/A
Target #2
N/A
N/A
Target #3
N/A
N/A
Target #4
N/A
N/A
Refer to individual partnership PIP section.
6 - Other Program Element Attributes — Element C Core Program Coordination
Other Program Element Attributes
CORE Program Coordination
a) Best Practices: Describe why program
This program element incorporates lessons learned
element approach constitutes "best
from previous partnerships. Close coordination
practice" or reflects "lessons learned" in
with Core and 3rd Party programs is integral for
market strategies, program design and /or
success. See EM &V section for future
implementation techniques, or past
documentation of best practices.
experience. Provide references where
available.
b) Innovation: Describe any unique or
This program element is unique because it takes
innovative aspects of program element not
coordination to a new level from the 2006 -2008
previously discussed. Why is this
cycle. Government Partnerships will work with
innovative?
Core programs, 3rd Party programs to develop a
strategic market segment plan. This plan will
identify largest opportunities for cost - effective
energy savings, address barriers, share best
practices and efficiently allocate resources.
Partnerships will use education and outreach
channels to inform their customers about energy
savings opportunities and share best practices
within partnerships.
c) Interagency Coordination: Describe any
Core program integration will require strong
interagency coordination with the ARB,
coordination with outside agencies. As
CEC on PIER or Codes and Standards;
communities look to retrofit buildings and perform
non - utility market initiatives; energy
education and outreach, coordination with other
efficiency market forces, opportunities and
governmental agencies will be a priority. A
trends; and timeline by which market
strategy will be to identify partnership
segment will be "transformed" or other
opportunities with the various agencies and
aspects of the program.
beginning to align our goals. On the community
level, as local governments begin to think about
AB32 implementation, GHG emission reduction
opportunities will be indentified by modeling
usage, past program participation and other trends.
2013 -2014 Energy Efficiency Programs
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Other Program Element Attributes
CORE Program Coordination
d) Integrated /coordinated Demand Side
In line with the Integration chapter of the Strategic
Plan, partnerships will begin to adopt an integrated
Management: Describe how program will
achieve integrated or coordinated delivery
strategy for delivering demand response and self -
of all DSM options, as well as ESAP and
generation programs. Partnerships will work to
WET. (If this is an integral part of the
develop working groups to enable the most
program element and fully covered under
effective delivery method of the various programs.
44 note that here.) Describe in detail how
Workforce education and training initiatives will
program will achieve integrated or
build capacity at the community level.
coordinated delivery of all DSM options
(energy efficiency, demand response, and
onsite generation) where applicable
including integrated program design and
delivery, shared budgets, program
evaluation, and incentive mechanisms that
promote greater integration of DSM
resources. Provide a complete description
for all the technologies, including
integration supporting technologies that
will be included in the program. If the
program does not include all DSM options
as noted above, briefly provide an
explanation for a more limited subset of
DSM technologies. Utilize Attachment 5A
to highlight any shared or leveraged budget
categories and amounts (admin, incentives,
ME &O, and other applicable categories).
e) Integration across resource types
Several partnerships have worked with various
(energy, water, air quality, etc): If program
water, air quality and transportation agencies to
aims to integrate across resources types,
provide integrated offerings. By coordinating with
provide rationale and general approach. (If
ESAP programs and other agency programs,
this is an integral part of the program
certain partnerships plan to work closely with
element and fully covered under 44 note
other agencies and look for further opportunities.
that here.)
f) Pilots: Describe any pilot projects that
Partnerships will look at their government
are part of this program (If this was fully
facilities in a strategic and prioritized manner.
covered under #4, note that here.)
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Other Program Element Attributes
CORE Program Coordination
g) EM &V: Describe any process evaluation
A process evaluation will be conducted by a third
or other evaluation efforts that will be
party evaluator. The evaluation will assess
undertaken by the utility to determine if the
communication and coordination effectiveness
program is meeting its goals and
between partners as well as satisfaction with the
objectives. Include the evaluation
service and increased awareness of energy
timeframe and brief description of scope,
efficiency opportunities. A combination of
as well as a summary of specific
interviews and focus groups will likely be used to
methodologies, if already developed. If not
collect data. The evaluation is expected to build
developed, indicate the process for
upon results found in the recently completed
developing them. Include reference to
process evaluation for PY2006 to 2008.
tracking databases that will be used for
evaluation purposes.
Element D — Unique Program Element -Local Government Regional Resource Program:
4 — Program Element Description and Implementation — Element D — Local Government
Regional Resource Program
D. Unique Program Element
D1- Government Facilities
D2- Technical Assistance
D3- Financing
D4 -Peer to Peer Support
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Overview
Local government struggle with securing energy /sustainability resources, and current budget
conditions make the availability of such resources unlikely in the foreseeable future. The Local
Government Regional Resource Program is a "virtual center" approach which is an expansion to
our current Local Government Partnership program offerings. The Program will commence in
one region initially with the intent to roll out service territory wide in 2013 -14 program cycle.
The program will support local governments (both partners and non - partners) and intends to
drive increased comprehensive energy efficiency and will create deep energy savings by local
governments by complimenting and leveraging resources as well as filling gaps that currently
exist within local government organizations, CEC, PUC and SoCalGas energy efficiency
programs. These gaps prevent local government from successfully implementing higher value
energy efficiency projects that demonstrate energy efficiency leadership to the community and
increase community wide energy efficiency participation. Lessons learned from past partnership
initiatives have identified the need for improvement in resources that provide cost - effective, on
demand energy management services, and expertise to enable local governments to create
responsive, sustainable, and widespread public sector energy management results.
The "virtual center" approach will provide turnkey resources through hands on support, results
oriented energy management, and augmenting existing Local Government Partnerships. A suite
of resources shall include resources such as, but not limited to:
• Project management support
• Engineering and analytical support
• Library of boiler plate agreements and templates that can support local government with
the RFP process as well as assistance securing financing from various sources
Providing these resources will result in improved energy management activity and increased
program participation through energy efficiency and financing programs.
Dl- Government Facilities
The Local Government Regional Resource Program supports the Government Facilities element
by helping to provide technical resources for energy action for local governments augmenting
existing partnership resources that will result in improved energy management activity and
increased program participation through energy efficiency and financing programs.
D2- Technical Assistance
Resources such as engineering and analytical support, project development and management will
be provided through a turnkey approach.
D3- Financine
Local governments often have limited finding and technical resources to secure financing for
energy efficiency projects. The Local Government Regional Resource Program intends to
provide support to establish resources for securing financing for energy projects from various
sources.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
D4- Peer -to -Peer Support
• The Local Government Regional Resource Program offering will include information sharing
through peer -to -peer learning.
Partnership Program Advancement of Strategic Plan Goals and Objectives
The table below shows which partner is addressing each strategic planning goal. Please refer to
individual local government sub PIP'S for more detail of each individual partner's advancement
of the strategic goal.
a
N
a
N
a
N
_a
t
3
t
C
0
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>
c
o
1`0
0
N
a
a
m
c
a
m
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W
_C
.T
N
W
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N
r
L
y
dt
CL
U
N
O
U
d
Q
LU
£
y
`m
c
W
£C
Strategic Planning
Y
a
a
10
10
m
m a
'
12
W
o a
o"
1 -1: Develop, adopt and
implement model building
energy codes (and/or other
green codes) more
stringent than Title 24's
Yes
Yes
Yes
Yes
No
No
requirements, on both a
mandatory and voluntary
basis; adopt one or two
additional tiers of
increasing stringency.
1.2: Establish expedited
permitting and entitlement
approval processes, fee
structures and other
Yes
Yes
Yes
Yes
No
No
incentives for green buildings
and other above -code
developments.
1.3: Develop, adopt and
implement model point -of-
sale and other point -of
No
No
No
No
No
No
transactions relying on
building ratings.
1.4: Create assessment
districts or other mechanisms
so property owners can fund
EE through city bonds and
Yes
Yes
Yes
No
No
No
pay off on property taxes;
develop other EE financing
tools.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
¢
's
¢
r
¢
¢
L
t
C
C
¢
T
8�
C
¢
w
T
O
v
m
a
c
w
d
W
d
v
mt
rn
c
a
E
U
U
q
¢
c
; a 12
m e
=
0
r
c
U
E_
w
Strategic Planning
Y
m
n m
w
m
n a
'
12
w
m
o
1.5: Develop broad education
program and peer -to -peer
support to local govt's to
Yes
Yes
Yes
Yes
No
No
adopt and implement model
reach codes
1.6:1-ink emission reductions
from "reach" codes and
Yes
Yes
No
Yes
No
No
programs to ARB's AB 32
program
1.7: Develop energy
efficiency - related "carrots and
Yes
Yes
No
Yes
Yes
No
No
sticks" using local zoning and
development authority.
2 -1: Statewide assessment of
local government code
Yes
Yes
No
No
No
No
No
enforcement and
recommendation for change.
2 -2: Dramatically improve
compliance with and
enforcement of Title 24
building code, and of HVAC
Yes
Yes
Yes
No
No
No
permitting and inspection
requirements (including focus
on peak load reductions in
inland areas).
2 -3: Local inspectors and
contractors hired by local
governments shall meet the
requirements of the energy
No
No
No
No
No
No
component of their
professional licensing (as
such energy components are
adopted).
3 -1: Adopt specific goals for
efficiency of local government
Yes
Yes
Yes
Yes
Yes
No
buildings.
3 -2: Require commissioning
for new buildings, and re-
commissioning and retro-
Yes
Yes
No
Yes
No
No
No
commissioning of existing
buildings.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Element D — Individual Local Government Partnerships
The Individual Local Government Partnerships are listed below:
a
a
p
o
's
a
r
t
t
C
a
E,
a
U
m
c
o
c
a
m
C
m
a.
.
OI
W
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Strategic Planning
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2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
1. County of Los Angeles Partnership
2. Kern County Energy Watch Partnership
3. Riverside County Partnership
4. County of San Bernardino Partnership
5. Santa Barbara County Energy Watch (North Santa Barbara) and (South County Santa
Barbara)
6. South Bay Partnership
7. San Luis Obispo County Energy Watch Partnership
8. San Joaquin Valley Partnership
9. Orange County Cities Partnership
10. Statewide Energy Efficiency Collaborative (SEEC Partnership)
11. Community Energy Partnership (CEP)
12. Desert Cities Partnership
13. Ventura County Regional Energy Alliance
14. Gateway Cities Partnership
15. San Gabriel Valley Partnership
16. City of Santa Ana Partnership
17. Westside Cities Partnership
18. City of Simi Valley Partnership
19. City of Redlands Partnership
20. City of Beaumont Energy Partnership
21. Western Riverside Energy Partnership
22. Local Government Energy Efficiency Pilots (Subject to CPUC ED approval)
23. New Partnership (Subject to CPUC ED approval)
24. Regional Resource Placeholder
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
Program Name: City of Santa Ana Partnership
Program ID: SCG3778
Program Type: Local Government Partnership
2. Program Element Description and Implementation Plan
The City of Santa Ana has expressed interest for SoCalGas to join their partnership with SCE to
provide support implementing energy efficiency at their municipal facilities as well as their
diverse community. The City is comprised of small businesses and a large hard to reach Spanish
speaking community, and large base of low income customers. By joining the Partnership with
the City of Santa Ana and SCE, SoCalGas will be able to leverage existing SCE efforts to
promote EE to the city as well as their businesses and as well as Energy Upgrade California
(EUC) and Energy Savings Assistance (ESA) programs to their residents.
Santa Ana is the most populous city in Orange County, California, and serves as its county seat.
In addition to being part of the second largest metropolitan area in the United States — with
neighboring cities Los Angeles and Long Beach - , the City of Santa Ana has shown great
initiative in conservation of natural resources and energy. The City of Santa Ana encourages its
residents to live sustainably and has already partnered with multiple local and national
organizations to bring about change in the way residents consume resources. With influence
over almost thirteen million people in the Los Angeles —Long Beach —Santa Ana area, the City of
Santa Ana stands out as a leader in sustainable living.
a. List of program elements:
The three core program elements are similar to those identified in the Master PIP: Element A -
Government Facilities, Element B - Strategic Plan Activities and Element C - Core Program
Coordination.
b. Overview:
Core Program Element A - Government Facilities
A.1. Retrofit of county and municipal facilities
The City of Santa Ana Partnership will seek opportunities for energy savings through deep
retrofits which include but are not limited to projects which combine two of the following:
HVAC, Boilers, controls, both indoor and outdoor lighting, with heavy emphasis on LED
streetlights. The partnership has established a savings target 19,000 therms from municipal
facilities which will be funneled to rebate and incentive programs.
A.2. Retro- commissioning (of buildings and clusters of buildings)
The cities are including this means of achieving significant energy savings in their plans. See
A.1 above.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
A.3. Integrating Demand Response into the audits
The City of Santa Ana is currently implementing a Demand Response component in the current
retrofit projects with SCE. According to SCE DR/EE audits were conducted for all eligible
facilities during the 2010 — 2012 program cycle. Recommendations have been implemented as
feasible. SoCalGas will help promote participation in demand response programs. Additional
integrated EE /DR audits will be conducted in eligible facilities as needed.
A.4. Technical Assistance for project management, training, audits,
etc. -
Each partnership has a specific budget for each of these activities.
A.5) .On -Bill Financing
On -Bill Financing (OBF) is the city's preferred method of funding EE projects. The city
completed one major OBF project during 2011 with SCE and has four more pending the release
of additional finds in 2012. In alignment with the Strategic Plan's emphasis on leveraging
financial tools to encourage action on efficiency, as well as guidance from the CPUC on
financing, SoCalGas expects to continue OBF.
Core Program Element B - Strategic Plan Support
13.1 Code Compliance Support
The City of Santa Ana will consider shoring up Title 24 compliance and/or other code
efficiency /compliance to the extent the City can remain business - friendly and competitive. The
partnership will provide training for plan checkers, inspectors and personnel employed in the
trades.
11.2). Reach Code
Although no Reach codes are planned at this time, the partnership will explore meaningful CEC-
approved Reach codes as part of its effort to add value to energy efficiency in alignment with the
strategies stated in the Master PIP. This activity will follow the proposed path described in the
Codes & Standards PIP.
13.3). Guiding Document(s) Support
The partnership will provide support for development of a Sustainability Plan in line with the
goals and objectives found in the Strategic Plan.
B.4) Financing for the community
The City of Santa Ana will explore implementing an AB 811 Funding Mechanism to encourage
200 residents and 50 businesses to invest in solar retrofits. The program, if implemented, will
enable residents and businesses to repay loans via property tax bills. The partnership will
provide technical assistance and facilitate peer -to -peer support. The City will support any other
financing program the commission may direct the IOUs to implement during the 2013 — 2014
program extension.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
B.5) Peer to Peer Support
The partnership is interested in providing and sharing best practices with other partnerships, and will
continue to participate in such opportunities as it did during 2010 — 2012 with SCE.
Core Program Element C - Core Program Coordination
CA). Outreach and Education
The partnership will work with core programs to make a variety of public education materials for
use in community outreach efforts, to be delivered at community events, through local schools
municipal services bills, direct mail, and the partnership's webpage. The partnership plans to co-
brand and promote core and third party programs as needed, based on analysis of the city's
energy use profile. Higher energy -using or underserved segments will be provided with program
information and opportunities to take action.
C.2) Residential and Small Business Direct Install
There are no activities planned for direct install in homes and business at this time. However,
outreach will be done in the communication to create awareness of energy services and
programs as mentioned in C.1.
C.3.) Third -party program coordination
The Partnership will execute community events appropriate for a third party contractor to
execute, such as light exchange events.
CA) Retrofits for just -above ESA- qualified customers.
There is no plan to consider this in the 2013 - 2014 program cycle.
C.5) Technical assistance for program management, training, audits
The partnership will provide training and information to the city and its community and will
coordinate technical assistance, from other programs as described in the Master PIP.
a) Non - incentive services
The partnership will build a ME &O portfolio of activities to increase community enrollment in
energy core programs. The portfolio will include other SoCalGas services, resources, and assets
brought to support the ME &O Plan, including:
SoCalGas' Account Manager /Executive support;
SoCalGas' Energy Resource Center training;
Providing limited giveaways (i.e., opportunity drawings and energy kits); and
Providing marketing, design, and printing of brochures and other collateral materials.
b) Target audience
The partnership's principal target audiences are the City's municipal facilities. Facilities to be
improved include city hall, its police facility, the Corporate Yard, the South West Senior Center,
the Bowers Museum, the Transportation Center, Fire Stations 1 —10, and a variety of city parks.
The city has a history of investing in municipal facility energy efficiency upgrades that presently
position the city at the Silver incentive level.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
3. Program Element Rationale and Expected Outcome
a. Quantitative Baseline and Market Transformation Information
Refer to the overarching PIP section
b. Market Transformation Information
Baseline Metric
Program /Element
Metric A
I Metric B
IMetric C
Program /Element
I N/A
I NIA
I N/A
Refer to the overarching PIP section
b. Market Transformation Information
Refer to the overarching PIP section
c. Program Design to Overcome Barriers
In this Partnership, the barriers and strategies to overcome them are the traditional resource
barriers of expertise and funding as outlined in the Master PIP.
4. Other Program Element Attributes
a. Best Practices
Same as outlined in the Master PIP.
b. Innovation
Demonstrate environmental stewardship and commrmity leadership in support of the California
Long Term Energy Efficiency Strategic Plan (CLTEESP) by developing an EEMIS based
dashboard to simplify sustainability reporting including energy efficiency and renewable
energy.
Market Transformation Planning
Estimates
Program /Element
2013
2014
Metric A
N/A
N/A
Metric B
N/A
N/A
Metric C
N/A
N/A
Etc.
N/A
N/A
Refer to the overarching PIP section
c. Program Design to Overcome Barriers
In this Partnership, the barriers and strategies to overcome them are the traditional resource
barriers of expertise and funding as outlined in the Master PIP.
4. Other Program Element Attributes
a. Best Practices
Same as outlined in the Master PIP.
b. Innovation
Demonstrate environmental stewardship and commrmity leadership in support of the California
Long Term Energy Efficiency Strategic Plan (CLTEESP) by developing an EEMIS based
dashboard to simplify sustainability reporting including energy efficiency and renewable
energy.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
c. Interagency Coordination
The partnership will provide technical assistance and other support though the Codes and
Standards program as well as facilitate support from other programs and organizations through
its network of consultants, engaged for this purpose.
d. Integrated /coordinated Demand Side Mana eg ment:
The City will pursue necessary and cost - effective DSM opportunities as identified in the
Master PIP.
e. Integration across resource types (energy,
water, air quality, etc)
Santa Ana's integration activities include the rehabilitation of all of the City's groundwater
wells and pump stations that were built before 1970 to bring their overall plant efficiencies
to the industry standard of 65% or better. The partnership continues to look for further
energy and water efficiencies in the delivery infrastructure of the city.
Opportunities for enhanced integration and including climate protection across resource
types will be identified in the development of the city's Strategic Energy and Resource
Protection Plan. The partnership will provide technical assistance and other support,
especially as it relates to utility energy elements.
f Pilots
The partnership will build upon the successful pilots with SCE. The city will consider retro-
commissioning pilots that target deep retrofits at those municipal facilifies for which this
program is appropriate.
g. EM &V
The utilities are proposing to work with the Energy Division to develop and submit a
comprehensive EM &V Plan for 2013 - 2014 after the program implementation plans are filed.
This will include process evaluations and other program- specific studies within the context of
broader utility and Energy Division studies. More detailed plans for process evaluation and
other program- specific evaluation efforts cannot be developed until after the final program
design is approved by the CPUC and in many cases after program implementation has begun,
since plans need to be based on identified program design and implementation issues
5. Partnership Program Advancement of Strategic Plan Goals and Objectives
California Long Term Energy Efficiency Program Approach to Achieving
Strategic Plan (Strategic Plan) Strategy Strategic Plan Goal
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
California Long Term Energy Efficiency
Program Approach to Achieving
Strategic Plan (Strategic Plan) Strategy
Strategic Plan Goal
1 -1: Develop, adopt and implement model
This will be considered in the City's
building energy codes (and /or other green
Strategic Energy and Resource Protection
codes) more stringent than Title 24's
Plan. It will consider adopting codes at a
requirements, on both a mandatory and
level that will allow the city to remain
voluntary basis; adopt one or two
business friendly and competitive.
additional tiers of increasing stringency.
1 -2: Establish expedited permitting and
This will be considered in the city's
entitlement approval processes, fee
Strategic Energy and Resource Protection
structures and other incentives for green
Plan.
buildings and other above -code
developments.
1 -3: Develop, adopt and implement model
point -of -sale and other point -of
transactions relying on building ratings.
1-4: Create assessment districts or other
Explore the applicability of an AB 811
mechanisms so property owners can fund
Funding Mechanism and Energy
EE through city bonds and pay off on
Efficiency Enhancement pilot program,
property taxes; develop other EE financing
tools.
1 -5: Develop broad education program and
This will be considered in the city's
peer -to -peer support to local governments
Strategic Energy and Resource Protection
to adopt and implement model reach codes
Plan.
1 -6: Link emission reductions from "reach"
This will be considered in the city's
codes and programs to CARB's AB 32
Strategic Energy and Resource Protection
program
Plan.
2 -2: Dramatically improve compliance with
This item will be considered in the city's
and enforcement of Title 24 building code,
Strategic Energy and Resource Protection
and of HVAC permitting and inspection
Plan.
requirements (including focus on peak load
reductions in inland areas).
2 -3: Local inspectors and contractors hired
This will be considered in the city's
by local governments shall meet the
Strategic Energy and Resource Protection
requirements of the energy component of
Plan.
their professional licensing (as such energy
components are adopted).
3 -1: Adopt specific goals for efficiency of
This will be considered in the city's
local government buildings, including:
Strategic Energy and Resource Protection
Plan.
3 -2: Require commissioning for new
This will be considered in the city's
buildings, and re- commissioning and retro-
Strategic Energy and Resource Protection
commissioning of existing buildings.
Plan. The city currently has no
requirements but will provide assistance
through the partnership.
2013 -2014 Energy Efficiency Programs
Local Government Partnership Program
Program Implementation Plan
California Long Term Energy Efficiency
Program Approach to Achieving
Strategic Plan (Strategic Plan) Strategy
Strategic Plan Goal
3 -4: Explore creation of line item in local
This will be considered in the city's
government budgets or other options that
Strategic Energy and Resource Protection
allow EE cost savings to be returned to the
Plan. The item will be considered but, due
department and /or projects that provided
to the limitations of revenue and the budget
the savings to fund additional efficiency.
crisis that the City is facing, this is a low
priority.
3 -5: Develop innovation Incubator that
See Master Program Implementation Plan
competitively selects initiatives for
(PIP)
inclusion in local government pilot
proj ects.
4 -1: Local governments commit to clean
Development and implementation of a
energy /climate change leadership.
citywide Strategic Energy and Resource
Protection Plan will reinforce the city's
long standing position as an energy leader.
4 -2: Use local governments' general plan
This will be considered in the city's
energy and other elements to promote
Strategic Energy and Resource Protection
energy efficiency, sustainability and
Plan.
climate change.
4 -4: Develop local projects that integrate
This will be considered in the city's
EE /DSM /water /wastewater end use
Strategic Energy and Resource Protection
Plan.
4 -5: Develop EE- related "carrots" and
The city currently offers a program for
"sticks" using local zoning and
Solar that waives a plan check, permit and
development authority
inspection fees for systems that either
produce energy or save natural resources.
The Strategic Energy and Resource
Protection Plan will identify additional
opportunities or "carrots" using local
zoning and development authority.
"Carrots" outside of local zoning and
development authority:
Enhanced rebates to multi - family property
owners to install efficient products such as
lighting, refrigeration, and water heaters in
common areas and dwelling units.
Energy efficiency enhancement in
conjunction with AB 811 solar project
financing that will allow residents and
businesses to repay loans through property
tax liens.
EXHIBIT B
CITY OF SANTA ANA and SOUTHERN CALIFORNIA GAS COMPANY
PARTNERSHIP
2013 -2014 GOALS & PROGRAM BUDGET
Natural Gas Savings Target:
Other non - resource goals are contained in the SCG PIP in Exhibit B -2
2013 -14 SCG Santa Ana Partnership
2013 -2014 Partnership Total Non - Incentive Budget
2013
2014 2 -year Total
SCG
9,000 Therms
10,000 Therms
19,000 Therms
Other non - resource goals are contained in the SCG PIP in Exhibit B -2
2013 -14 SCG Santa Ana Partnership
2013 -2014 Partnership Total Non - Incentive Budget
$143,792
2014
Total
SCG Authorized Budget
$0,000
$0,000
$0,000
Marketing & Outreach
Total Utility Authorized Budget
$87,792
$16,000
Direct Implementation
$20,000
$20,000
Partner Authorized Budget
$56,000
2013 -14 Total Non - incentive Program Budget
$143,792
Projected Allocations for Santa Ana Partnership Authorized Budget $56,000
December 13, 2012
2013
2014
Total
Administration
$0,000
$0,000
$0,000
Marketing & Outreach
$8,000
$8,000
$16,000
Direct Implementation
$20,000
$20,000
$40,000
December 13, 2012
EXHIBIT C
EM &V Plan
[TO BE ATTACHED WHEN ISSUED BY THE COMMISSION]
2013 -14 San Luis Obispo County Energy Efficiency Partnership Agreement
Exhibit E - Allowable Costs
The following information describes the way costs for all ratepayer funded energy efficiency
programs should be categorized. Item 1, the memo, "Re: 2010 -2012 Energy Efficiency Portfolio
Administrative Costs ", dated October 22, 2009, provides guidance regarding cost categorization
resulting from the California Public Utility Commission's Decision approving utility 2010 -2012
programs (D.09 -09 -047). Item 2, the Allowable Costs Table is the primary source for
categorization of costs. Contractors shall use both of these documents to correctly categorize
costs under this contract. Please note that this information may be subject to change.
O1 -01 -2013 Proprietary & Confidential Page E -1
1. Memo re: 2010 -2012 Energy Efficiency Portfolio Costs
STATE OF CALIFORNIA
ARNOLD SCHWARZENEGGER, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
it
SAN FRANCISCO, CA 94102- 3298q7
October 22, 2009
Shilpa Ramaiya, Pacific Gas and Electric Company
Don Arambula, Southern California Edison
Athena Besa, Sempra Utilities
Re: 2010 -2012 Energy Efficiency Portfolio Administrative Costs
Monday afternoon October 19, we had a discussion regarding how administrative costs should
be categorized in light of the energy efficiency portfolio decision (D. 09 -09 -047) and the overall
budgets. Energy Division has consulted with the CPUC divisions and attaches some guidance
to the questions posed. We also have added to your list of categories provided to us for the
discussion.
We hope that we have addressed your concerns in a timely manner. Please feel free to contact
either Cathy Fogel at (415) 703 -1809 or me should any questions arise.
Yours truly,
Anne Premo
California Public Utilities Commission
Energy Efficiency Planning Section
770 L Street, Suite 1050
Sacramento, CA 95818
(916) 324 -8683
cc: Sandy Lawrie, Pacific Gas and Electric Company
Jeanne Clinton, CPUC
01 -01 -2013 Proprietary & Confidential Page E -2
2010 -2012 Administrative Cost Cap and Targets- Questions, Issues and Recommendations
1) TRAVEL COSTS: IOUs want travel costs for direct implementation non - incentive (DI -NI) and for
marketing to be billed to those respective categories, rather than to administrative costs. The allowable
costs attachment (ACA) (2006, cited in December 12, 2009 Ruling in D. 08 -07 -021) is silent on this. The
ACA does, however, include EM &V travel in the EM &V category. IOUs would like to charge travel /time
for staff participation in Strategic Plan workshops in that category.
Recommendation: a) Travel costs for IOU staff to travel to workshops regarding the Strategic Plan can
be billed to EM &V travel; b) Travel costs for DI -NI activities and marketing can be charged to those
respective cost categories; c) travel costs to EE conferences may be charged to administrative costs. .
Justification: It is standard practice within the CPUC accounting division to allow travel costs —such as
meeting with customers, etc -- to be charged to the applicable program area lie, to DI -NI or to
Marketing and Outreach (M &). Travel costs by IOU staff should be limited, but this will be achieved via
the cost targets for M &O and DI -NI.
2) CONFERENCE TRAVEL AND FEES /UTILTY SPONSORSHOP OF CONFERENCES: The IOUs suggest
that all travel and fees related to EE conferences are appropriate administrative costs. However, ED has
conferred with CPUC accounting and we jointly recommend that IOU sponsorship of conferences, i.e.
"platinum" "gold" level sponsorships of conferences, are explicitly prohibited as allowable IOU EE
conference costs. Sempra reports that its sponsorship of such conferences are currently billed as
corporate costs; SCE argues that IOU membership fees in smaller trade oriented associations sometimes
includes free entry into related conferences.
Recommendation: IOU sponsorships of EE conferences (i.e., "platinum" "gold" level donations) be
explicitly prohibited from inclusion in EE budgets as administrative costs. IOUs may join membership -
based issue - specific (i.e. HVAC) trade organizations that include as a component of membership benefits
entry into conferences. Other staff travel costs to participate in EE conferences are also allowable
administrative costs.
Justification: IOU sponsorship of major national EE conferences is corporate marketing, not EE program
work. IOU staff may participate in such large conferences through regular entry fees in the case that IOU
staff are presenting or have targeted educational or networking goals for specific conferences; these are
justifiable EE administrative costs.
3) BENEFITS /PENSIONS /PAYROLL TAXES: IOUs want to place vacation and sick leave costs relating
to labor costs for DI, M &O in those categories, stating that "these follow labor charges." The ACA places
these costs in the administrative cost category, but for EM &V states that benefits, payroll tax, and
pensions are in the EM &V cost category. All IOUs currently place all EE staff pensions and benefits in the
GRC; SCE also includes EE payroll taxes in the GRC, whereas Sempra and PG &E currently place those
under administrative costs.
Recommendation: IOUs should be allowed to continue to place EE pension and benefit costs in the GRC.
However, the IOUs should be required to consistently place EE payroll taxes as general
EE administrative costs (i.e. SCE should change its current practice of placing these costs in the GRC).
Labor vacation and sick leave costs should follow labor as the IOUs have proposed.
01 -01 -2013 Proprietary & Confidential Page E -3
Justification: It is CPUC standard practice to allow IOUs to recoup benefit and pension costs in the GRCs,
whereas payroll taxes are typically recouped as administrative costs. It is also standard CPUC practice to
allow vacation and sick leave costs to follow labor costs (i.e., to DI -NI, DI, M &0).
4) INFORMATION TECHNOLOGY COSTS: IOUs want IT costs related to tracking systems for
individual programs to be charged to M &O /DI respectively, and that only overall portfolio IT equipment
and work should be charged to administrative costs.
Recommendation: IOUs should be permitted to charge program- specific IT costs to the relevant
DI /M &O program categories. EM &V and other portfolio -level IT costs should be charged to
administrative costs except in the case that these constitute capital costs, such as the recent PG &E
request for MDSS cost recovery through the EE portfolio (that request was denied and PG &E referred to
the GRC to recoup those costs).
Justification: The ACA is silent on including IT costs in the EM &V category, thus these are reasonably
included — as overall portfolio IT costs — in the administrative cost categories, except when these are
capital costs, as noted above. It is reasonable that individual programs must have unique and high -
quality IT systems developed; such systems are critical for program implementation and savings
tracking. Comparison data for costs in other states indicate that IT is frequently not included in the
administrative cost category, and thus it is reasonable for the CPUC to not require that all IT costs are
placed in administrative costs.
5) INCLUSION OF LOCAL GOVERNMENT AND THIRD PARTY M &O AND DIRECT IMPLEMENTATION
(NON- INCENTIVE) (DI -NI) COSTS IN THE 6% AND 20% COST CAPS: In recent discussions between EE and
IOU staff, some confusion arose as to whether LGP /3`d Party M &O and DI -NI costs are subject to the 6%
and 20% cost targets.
Recommendation: LGP and3rd Party M &O and DI -NI costs are subject to the 6% and 20% overall
portfolio cost targets.
Justification: D. 09 -09 -047 is silent on ring- fencing LGP /3`d Party costs outside of the cost caps.
Controlling these costs is important in order to increase incentives offered directly to customers. It
should be noted, however, that the M &O and DI-NI cost targets are targets, not caps (p. 71 & 72; OP 13)
and that in the compliance filing an accompanying IOU explanation of why exceeding these caps is
critical to program implementation should be sufficient to justify exceeding these targets if special
circumstances can be explained. Special circumstances may be warranted in a variety of cases. For
instance, in the case of SCE, up to $50 million in non - resource program direct implementation costs
were either not identified by ED in our analysis (OBF program) or added as part of the budget
adjustment ($32 million for LGP Strategic Plan innovative programs).
01 -01 -2013 Proprietary & Confidential Page P -4
IOU Proposed Mapping of CPUC's Adopted Definitions, CAP'S and
Target's'
Administrative Activities — 10% CAP [see citation 1 below]
- Responding to Data Requests (pg 50)
- Responding to Financial & Regulatory Audits (pg 50)
- Support related to Regulatory Filings (Monthly & Quarterly Reports and Annual
Reporting) (pg 50)
- Human Resources Support (pg 49)
• Payroll taxes
• Payroll support
- Membership dues
- Travel & Conference Costs (Labor, Fee's, Lodging, Transportation, etc.) (pg 49 and 50).
IOU Sponsorship ("platinum" "gold" "silver" level etc) is prohibited as an EE allowable
travel cost. Such costs should be recouped in the GRC.
- Information Technologies Support and Services (pg 50)
o Licensing fees or IT development cost for program specific applications for
implementation are part of DI (benchmarking tool or Project Management tool)
- Accounting support (pg 50)
- Strategic Planning Administrative & Logistical Costs Related to Workshops (pg 57)
- Vacation and Sick Leave Related to Administrative Labor — follows labor charges (pg
50)
- Supply Management function activities to ensure oversight of contractors (pg 50)
- Administering contractor payments for services which are non incentive related (pg 50)
- Reporting Data Base (i.e. CRM, Track It Fast, Program Builder, SMART, etc.) (pg 50)
- Facility Related Costs
- Administrative Assistant Activities (pg 49 & 50)
- Utility administrative cost associated with Local Government Partnerships & Third Party
programs
10% Administrative Cost "Target" for Third Party and Local Government
Partnership Direct Cost (Separate from Utility Cost to administer these programs,
see citation 2 below) (pg 63)
Marketing Activities (within programs) — Target 6% (pg 238 and 239) See CPUC
allowable cost category definitions and see citation 3 below.
- Preparing Collateral
- Distributing Collateral
- Support related to Outreach Events
- Participating in Outreach Events
- Advertising, Media, Radio, Newspaper, Website and Magazine related Marketing
Activities
01 -01 -2013 Proprietary & Confidential Page E -5
LGP marketing & outreach related to Long -Term Strategic Planning support
Vacation and Sick Leave Related to Marketing Labor — follows labor charges (pg 50)
Marketing- specific IT costs
Staff travel to undertake marketing - specific work activities (excluding conference
participation).
Direct Implementation Activities — Target 20% [see citation 4 below]
- Employees who have a direct interface with the customer (i.e. Account Executives,
Auditors, Engineers, Processors, Inspectors, call center representatives) (pg 50)
- Processing Rebate applications (pg 50)
- Inspecting rebated /incentivized measures (pg 50)
- Engineering related activities (pg 50)
- Measurement Development (Pg 50)
- Education and Training Contractors /Partners /Customers (pg 50)
- Project Management Activities (i.e. Planning Scope of work, working with contractors
and customers, setting goals, reviewing goals, reacting to market conditions, and
customer calls) (pg 50 and pg 57)
- Program Planning, Development and Design (pg 57)
- Emerging Technologies Program Management Activities (pg 50)
- WE &T Program Management Activities (pg 50)
- On Bill Financing Program Management Activities (pg 50)
- Customer Support (pg 50)
- Energy Audits and Continuous Energy Improvement (pg 50 & 192)
- Market Transformation and Long -Term Strategic Plan Support (pg 51)
- Compiling and maintaining information for projects (pg 50 and pg 57)
- Licensing fees or IT development cost for program specific applications for
implementation are part of DI (benchmarking tool or Project Management tool)
- Vacation and Sick Leave Related to Direct Implementation Labor — follows labor charges
(pg 50)
- Direct - implementation specific IT costs
- Staff travel to undertake direct implementation- specific work activities (excluding
conference participation).
Target of 20% on "non- resource" support costs which includes direct
implementation non - incentive costs associated with incentive -based programs,
such as education and training, engineering support and project management, and
long tern strategic plan support. (Pg 6)
EM &V Activities:
- Staff travel to participate in Strategic Plan workshops
- Market, cost assessment and other studies as relevant to or suggested in the Strategic Plan
01 -01 -2013 Proprietary & Confidential Page E -6
Decision 09 -09 -047 Citations
Citation 1: Administrative Costs (p.49, OP #13a)
(p. 491
4.4. Administrative Costs
We impose a 10% cap on total administrative costs, defined as overhead
(General and Administrative (G&A) Labor and Materials), labor (Management
and Clerical), Human Resources (HR) Support and Development, Travel and
Conference Fees (Administrative Costs).
Administrative costs are a necessary component of implementing energy efficiency
programs. Utilities have a number of administrative duties including reporting to the
Commission, internal management controls, and oversight of contractors which must be
funded in order to carry out their required programs. Administrative costs,3o as zve have
defined them, include:
• Overhead (G&A Labor/Materials): administrative labor,
accounting support, IT services and support, reporting databases,
data request responses, CPUC financial audits, regulatory filings
support and other ad -hoc support required across all programs.
• Labor (Managerial & Clerical): This category includes utility
labor costs related to either management or clerical positions
directly related to program administration. SDG&E and SCG
also add payroll taxes.
• Travel and Conference fees: This includes labor, travel and fees
for conferences.
These Administrative Costs categories do not include EM&V or Marketing
and Outreach. Direct Implementation costs for delivering programs, which are
defined as "costs associated with activities that are a direct interface with the
customer or program participant or recipient (i.e., contractor receiving training),
are also excluded.31 Direct Implementation includes non- resource programs such
as Emerging Technologies, WEPT, Lighting Market Transformation, Zero Net
Energy Pilots, local P statewide DSM integration and On -Bill Financing. Also
included are direct implementation non - incentive costs associated with
incentive -based programs. These costs include engineering project management,
customer support, certain sub - programs (e.g., Energy Audits and Continuous
Administrative costs are necessary to well- functioning programs, it is our
01 -01 -2013 Proprietary & Confidential Page E -7
duty to ensure that administrative costs are reasonable and limited to those
overhead and labor costs that are truly required to implement quality programs,
so that ratepayer funds are used to the greatest degree possible for the programs
themselves.
MA list of allowable administrative costs is attached to the December 2008 Assigned
Commissioner's Ruling, at attachment 5 -A.
31 February, 2006 ALJ Ruling in R.01 -08 -028 on reporting requirements for the utility
energy efficiency programs.
[Ordering Paragraph #13a]
a. Administrative costs for utility energy efficiency programs (excluding third party
and/or local government partnership budgets) are limited to 10% of total energy
efficiency budgets. Administrative costs shall be closely identified by and consistent
across utilities. Administrative costs shall not be shifted into any other costs category.
Utilities shall not reduce the non - utility portions of local government partnership and
third party implementer administrative costs, as compared to levels contained in budgets
approved herein, unless those levels exceeded 10% in the July 2009 utility
supplemental applications in this proceeding;
Citation 2: Administrative Costs- third parties and partnerships (p.63)
(p. 63]
An administrative cost cap of 10% on third party programs and local government
programs is also an important component of containing total portfolio administrative
costs. However, imposing a 10% administrative cost cap for each program within these
categories would be excessively burdensome for utilities, third party contractors and
government partners. Therefore, we direct the utilities to seek to achieve a 10
administrative cost target for third party and local government partnership direct costs
(i.e., separate from utility costs to administer these programs). As combined total
program categories, third party and local government program administrative costs
should strive toward the 10% total administrative cost target. In addition, we agree with
comments by LGSEC and CCSF on the Proposed Decision that utilities should not be
permitted to unduly shift administrative cost cuts onto local government partnership and
third party implementers. Therefore, we direct the utilities to not reduce the non - utility
portions of local government partnership and third party implementer administrative
costs, as compared to levels contained in the budgets proposed by the utilities in their July
2009 applications and approved herein, except where these costs as filed exceed the 10
01 -01 -2013 Proprietary & Confidential Page E -8
cost target level.
Citation 3: Marketing Activities (p.73, OP #13b)
gyp. 73]
Using this data as a guideline for our programs, we reduce the ME&O budget to 6% of
the adopted portfolios, which is a reduction from the proposed levels of around 8 %, but
still above national trends (excluding Vermont as an outlier). This is not a hard cap, as
with administrative costs, but a budget target. This target is reasonable. As discussed in
the ME&O section, the centerpiece of our ME&O program — the statewide ME&O
branding and outreach program — has a budget of $60 million, with additional ficnding
coming from already approved budgets for the LIFE and Demand Response programs.
This reduction is also consistent with the direction of D.07 -10 -032, in which we noted
our concerns about the increasing ratepayer costs of ME&O for California's demand side
programs and directed a statewide, integrated approach.
[Ordering Paragraph #13b]
Marketing, Education and Outreach costs for energy efficiency are set at 6% of total
adopted energy efficiency budgets, subject to the fund- shifting rules in Section II, Rule 11
of the Energy Efficiency Policy Manual
Citation 4: Direct Implementation Activities [p.6, 50, 57, OP #13c]
gyp• 61
Similarly, zue place a target of 20% on non - resource support costs.7
7 This activity includes direct implementation non - incentive costs associated with
incentive -based programs, such as education and training, engineering support and
project management, and long term strategic plan support.
(p. 5 0
Direct Implementation costs for delivering programs, which are defined as "costs
associated with activities that are a direct interface with the customer or program
participant or recipient (i.e., contractor receiving training)," are also excluded.31 Direct
Implementation includes non - resource programs such as Emerging Technologies,
WE&T, Lighting Market Transformation, Zero Net Energy Pilots, local & statewide
DSM integration and On -Bill Financing. Also included are direct implementation non-
01 -01 -2013 Proprietary & Confidential Page E -9
incentive costs associated with incentive -based programs. These costs include
engineering project management, customer support, certain sub - programs (e.g., Energy
Audits and Continuous Energy Improvement), market transformation and long term
strategic plan support.
31 February, 2006 ALJ Ruling in R.01 -08 -028 on reporting requirements for the utility
energy efficiency programs.
(p. 5 7
We therefore clarifij here that we accept utility categorization of program planning,
design and project management costs as direct implementation non - incentive costs and
direct our staff to issue a revised guideline describing the details of administrative costs
versus direct implementation costs.
[Ordering Paragraph #13c]
Non - resource costs (excluding non - resource direct implementation costs) are set at 20
of the total adopted energy efficiency budgets;
01 -01 -2013 Proprietary & Confidential Page E -10
2. Allowable Costs Table — February 21, 2006
Allowable Costs Table
The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for bill -payer funded energy
efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be
categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no
cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or
reported to the Company. If there is a desire to include additional Allowable Cost elements, the Company
Representative should be contacted in order for the Representative to seek approval from the CPUC. (Source:
Administrative Law Judge's Ruling on Reporting Requirements, Docket No. 01 -08 -028, February 21, 2006). Invoiced
costs will be used by all IOUs for recording expenses for the Energy Efficiency programs as per the adopted allowable
costs presented in the Attachment to the 2/21/06 ALJ ruling. Any accompanying costs breakdowns (or detail) shall
reflect consistent business costing and normal business operations reporting. (Source: Energy Division Workshop
Report: Annual Reporting Reauirements and Performance Basis. Docket No. 06 -04 -010. Julv 20. 2007. n. 13)
3/30/2006
Cost Categories Allowable Costs
Administrative Cost Category
Managerial and Clerical Labor
IOU Labor - Clerical
IOU Labor - Program Design
IOU Labor - Staff Management
IOU Labor - Staff Supervision
Subcontractor Labor - Clerical
Subcontractor Labor - Program Design
Subcontractor Labor - Program Development
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Subcontractor Labor - Staff Management
Subcontractor Labor - Staff Supervision
Human Resource Support and Develo meat
IOU Labor - Human Resources
IOU Labor - Staff Development and Training
IOU Benefits - Administrative Labor
IOU Benefits - Direct Implementation Labor
IOU Benefits - Marketing/Advertising /Outreach Labor
IOU Payroll Tax - Administrative Labor
IOU Payroll Tax - Administrative Labor
IOU Payroll Tax - Administrative Labor
IOU Pension - Administrative Labor
IOU Pension - Direct Implementation Labor
IOU Pension - Marketing /Advertising /Outreach Labor
Subcontractor Labor- Human Resources
Subcontractor Labor - Staff Development and Trainin
Subcontractor Benefits - Administrative Labor
Subcontractor Benefits - Direct Implementation Labor
Subcontractor Benefits - Marketing /Advertising /Outreach Lahor
Subcontractor Pa roll "fax - Direct Implementation Labor
Subcontractor Payroll Tax - Market ng /Advertising Outreach Labor
Subcontractor Pension - Administrative Labor
01 -01 -2013 Proprietary & Confidential Page E -11
Allowable Costs Table
The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for bill -payer funded energy
efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be
categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no
cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or
reported to the Company. If there is a desire to include additional Allowable Cost elements, the Company
Representative should be contacted in order for the Representative to seek approval from the CPUC. (Source:
Administrative Law Judge's Railing on Reporting Requirements, Docket No. 01 -08 -028, February 21, 2006). Invoiced
costs will be used by all IOUs for recording expenses for the Energy Efficiency programs as per the adopted allowable
costs presented in the Attachment to the 2/21/06 ALJ ruling. Any accompanying costs breakdowns (or detail) shall
reflect consistent business costing and normal business operations reporting. (Source: Energy Division Workshop
Re ort: Annual Reporting Requirements and Per ormance Basis, Docket No. 06 -04 -010, July 20, 2007, p. 13)
3/30/2006
Cost Categories
Allowable Costs
Subcontractor Pension - Direct Im lementation Labor
Subcontractor Pension - Marketing/Advertising/Outreach Labor
Travel and Conference Fees
IOU Conference Fees
IOU Labor - Conference Attendance
IOU Travel - Airfare
IOU Travel - Lodging
IOU Travel - Meals
IOU Travel - Mileage
IOU Travel - Parkin
IOU Travel - Per Diem for Misc. Expenses
Subcontractor - Conference Fees
Subcontractor Labor - Conference Attendance
Subcontractor - Travel - Airfare
Subcontractor - Travel - Lodging
Subcontractor - Travel - Meals
Subcontractor - Travel - Mileage
Subcontractor - Travel - Parking
Subcontractor - Travel - Per Diem for Misc. Expenses
Overhead (General and Administrative) - Labor and Materials
IOU Equipment Communications
IOU Equipment Computing
IOU Equipment Document Reproduction
IOU Equipment General Office
IOU Equipment Trans ortation
IOU Food Service
IOU Office Supplies
IOU Postage
IOU Labor - Accounting Support
IOU Labor - Accounts Payable
IOU Labor - Accounts Receivable
IOU Labor - Administrative
IOU Labor - Facilities Maintenance
IOU Labor - Materials Management
IOU Labor - Procurement
IOU Labor - Shop Services
IOU Labor - Transportation Services
_
IOU Labor - Automated Systems
IOU Labor - Communications
IOU Labor - Information Technology
01 -01 -2013 Proprietary & Confidential Page P -12
Allowable Costs Table
The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for bill -payer funded energy
efficiency work The costs reported should be only for costs actually expended. Any financial commitments are to be
categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no
cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or
reported to the Company. If there is a desire to include additional Allowable Cost elements, the Company
Representative should be contacted in order for the Representative to seek approval from the CPUC. (Source:
Administrative Law Judge's Ruling on Reporting Requirements, Docket No. 01 -08 -028, February 21, 2006). Invoiced
costs will be used by all IOUs for recording expenses for the Energy Efficiency programs as per the adopted allowable
costs presented in the Attachment to the 2/21/06 ALJ ruling. Any accompanying costs breakdowns (or detail) shall
reflect consistent business costing and normal business operations reporting. (Source: Energy Division Workshop
Re port, Annual Reporting Requirements and Performance Basis, Docket No. 06 -04 -010, July 20, 2007, p. 13)
3/30/2006
Cost Categories
Allowable Costs
IOU Labor - Telecommunications
Subcontractor Equipment Communications
Subcontractor Equipment Computing
Subcontractor Equipment Document Reproduction
Subcontractor Equipment General Office
Subcontractor Equipment Transportation
Subcontractor Food Service
Subcontractor Office Supplies
Subcontractor Postage
Subcontractor Labor - Accounting Support
Subcontractor Labor - Accounts Pa able
Subcontractor Labor - Accounts Receivable
Subcontractor Labor - Facilities Maintenance
Subcontractor Labor - Materials Management
Subcontractor Labor - Procurement
Subcontractor Labor - Shop Services
Subcontractor Labor - Administrative
Subcontractor Labor - Transportation Services
Subcontractor Labor - Automated Systems
Subcontractor Labor - Communications
Subcontractor Labor - Information Technology
Subcontractor Labor - Telecommunications
Marketing/Ad vertisin /Outreach Cost
Category
IOU - Advertisements / Media Promotions
IOU -Bill Inserts
IOU - Brochures
IOU - Door Hangers
IOU - Print Advertisements
IOU - Radio Spots
IOU - Television Spots
IOU - Website Development
IOU Labor - Marketing
IOU Labor - Media Production
_
IOU Labor - Business Outreach
IOU Labor - Customer Outreach
IOU Labor - Customer Relations
Subcontractor - Bill Inserts
Subcontractor - Brochures
Subcontractor - Door Hangers
Subcontractor -Print Advertisements
01 -01 -2013 Proprietary & Confidential Page E -13
Allowable Costs Table
The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for bill -payer funded energy
efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be
categorized as cormnitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no
cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or
reported to the Company. If there is a desire to include additional Allowable Cost elements, the Company
Representative should be contacted in order for the Representative to seek approval from the CPUC. (Source:
Administrative Law Judge's Ruling on Reporting Requirements, Docket No. 01 -08 -028, February 21, 2006). Invoiced
costs will be used by all IOUs for recording expenses for the Energy Efficiency programs as per the adopted allowable
costs presented in the Attachment to the 2/21/06 ALJ ruling. Any accompanying costs breakdowns (or detail) shall
reflect consistent business costing and normal business operations reporting. (Source: Energy Division Workshop
Report: Annual Reporting Requirements and Per ormance Basis, Docket No. 06 -04 -010, July 20, 2007, p, 13
3/30/2006
Cost Categories
Allowable Costs
Subcontractor - Radio Spots
Subcontractor - Television Spots
Subcontractor - Website Development
Subcontractor Labor - Marketing
Subcontractor Labor - Media Production
Subcontractor Labor - Business Outreach
Subcontractor Labor - Customer Outreach
Subcontractor Labor - Customer Relations
Direct Implementation Cost Category
Financial Incentives to Customers
Activity - Direct Labor
IOU Labor - Curriculum Development
IOU Labor - Customer Education and Training
IOU Labor - Customer Equipment Testing and Diagnostics
IOU Labor - Facilities Audits
Subcontractor Labor - Facilities Audits
Subcontractor Labor - Curriculum Development
Subcontractor Labor - Customer Education and Training
Subcontractor Labor - Customer Equipment Testing and Diagnostics
Installation and Service - Labor
IOU Labor - Customer Equipment Repair and Servicing
IOU Labor - Measure Installation
Subcontractor Labor - Customer Equipment Repair and Servicing
Subcontractor Labor - Customer Equipment Repair and Servicing
Direct Implementation Hardware and Materials
IOU Audit Applications and Forms
IOU Direct Implementation Literature
IOU Education Materials
IOU Energy Measurement Tools
IOU Installation Hardware
Subcontractor - Direct Implementation Literature
Subcontractor - Education Materials
Subcontractor - Energy Measurement Tools
Subcontractor - Installation Hardware
Subcontractor -Audit Applications and Forms
Rebate Processing and Inspection - Labor and Materials
IOU Labor - Field Verification
IOU Labor - Site Inspections
IOU Labor - Rebate Processing
IOU Rebate Applications
01 -01 -2013 Proprietary & Confidential Page E -14
Allowable Costs Table
The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for bill -payer funded energy
efficiency work The costs reported should be only for costs actually expended. Any financial commitments are to be
categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no
cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or
reported to the Company. If there is a desire to include additional Allowable Cost elements, the Company
Representative should be contacted in order for the Representative to seek approval from the CPUC. (Source:
Administrative Law Judge's Ruling on Reporting Requirements, Docket No. 01 -08 -028, February 21, 2006). Invoiced
costs will be used by all IOUs for recording expenses for the Energy Efficiency programs as per the adopted allowable
costs presented in the Attachment to the 2/21/06 ALJ ruling. Any accompanying costs breakdowns (or detail) shall
reflect consistent business costing and normal business operations reporting. (Source: Energy Division Workshop
Report: Annual Reporting Requirements and Performance Basis, Docket No. 06 -04 -010, July 20, 2007, p. 13)
3/30/2006
Cost Categories
Allowable Costs
Subcontractor Labor - Field Verification
Subcontractor Labor - Rebate Processing
Subcontractor - Rebate Applications
01 -01 -2013 Proprietary & Confidential Page E -15
Sempra Energy
January 6, 2014
City of Santa Ana
Attn: Christy Kindig
Post Office Box 1988, M -21
Santa Ana, CA 92701
Re: Southern California Gas Company
Energy Efficiency Partnership Program Agreement
To Whom It May Concern:
Harper Wells
Insurance & Risk Advisory Analyst
Sempra Energy
Insurance & Risk Advisory
101 Ash Street, HQ 3
San Diego,CA 92101.3017
hwells@sempra.com
Please accept this letter as compliance with your request for evidence of self- insurance covering the
above - referenced agreement, between Southern California Gas Company ( "SoCal Gas') and the
City of Santa Ana. SoCal Gas hereby acknowledges that it is permissibly self - insured by the State of
California and that the following programs are in full force and effect:
Type of Insurance
Type ofohcy ;
Policy Period
Connnercial General Liability
Self- Insured
Continuous
Automobile Liability
Self- Insured
Continuous
Workers' Co m ensation
Self- Insured
Continuous
Any claims resulting from our operations may be referred to:
Southern California Gas Company
Attention: Mike Moreno, Claims Manager
555 W. 5th Street
Los Angeles, CA 90013 -1011
Should you have any questions or require additional coverage information, please feel free to contact
me.
By its duly authorized representative,
Hai per T -yells
Harper Wells
Insurance & Risk Advisory Analyst
cc: J. Kong app "� v i ^,!) A11._, fo y ol,, N,
Z. St rt �t red.
;ujt CILV F. ,,' -: